AIG received $277 million from the Asia-based private-investment firm for PineBridge Investments and expects to receive a performance note and a continuing share of carried interest. The deal for as much as $500 million was supposed to close by the end of 2009 but has encountered multiple delays.
Pacific Century Group is run by Richard Li, the prominent Hong Kong businessman and son of Li Ka-shing, one of Asia's wealthiest people.
AIG will continue to manage about $509 billion of assets as part of its internal investment operation. PineBridge manages $87.3 billion of assets for institutional and individual investors.
AIG, which is about 80% owned by the U.S. government, has been selling off assets to repay tens of billions of dollars in government rescue funds.
The company recently completed a $15.5 billion deal to sell its second-largest foreign life-insurance business to MetLife Inc. and to sell its Asian life-insurer unit, American International Assurance Ltd., to Prudential PLC for $35.5 billion.