AIG Global closes $239m fund of funds

The insurance giant’s Global Investment Group announced a $239 million final close for Private Equity Portfolio III, a combination of international, domestic and secondary funds of funds as well as a direct investment fund.

New York-based AIG Global Investment Group has closed its Private Equity Portfolio III on $239 million (€180 million).

The fund of funds, launched in February 2003, fell just short of its original goal of $250 million, stated in documents filed with the Securities and Exchange Commission.

PEP III is composed of a broad range of investment funds:  three separate funds of funds for US buyouts, non-US buyouts and venture capital, respectively, as well as a direct investment fund and a secondary fund of funds.

In a statement, managing director Steven Costabile, head of the Private Equity Funds Group, said that the diverse combination of investment vehicles could “reduce investment volatility and stabilise expected returns for investors”.

According to a press release, 21 investors have committed to PEP III, including insurance companies, pension funds, endowments and universities, along with subsidiaries of AIG.

The current fund follows on the heels of two AIG Global Investment predecessor funds. In June 2002, PEP II held a final close with $135 million in commitments 18 months after the first PEP fund closed on $250 million.

AIG Global Investment Group, an affiliate of the American Insurance Group, formed its private equity group in 1990 and, as of September 30, 2004, manages more than $15.4 billion in assets.