ReutersRobert Benmosche, the chief executive of the American International Group since 2009.The American International Group has sold its $500 million stake in the Blackstone Group, severing a longtime direct investment in the private equity giant, a person briefed on the matter told DealBook on Friday.
A.I.G. gained the stake in Blackstone in July 1998, when the insurance company bought a 7 percent share for about $150 million. A.I.G. also poured about $1.2 billion in Blackstone’s investment funds.
But the two firms have shared a relationship for longer than that. Maurice R. Greenberg, A.I.G.’s longtime chief, had previously served as a member of Blackstone’s advisory board, and A.I.G. had already been an investor in Blackstone funds.
In return, Blackstone had been an adviser to A.I.G., especially during the financial crisis. The head of Blackstone’s advisory team, John Studzinski, was a constant presence in A.I.G.’s board room as the insurance giant teetered toward bankruptcy, only to be saved by a lifeline from the federal government.
Blackstone has since advised A.I.G. on at least seven asset sales aimed at repaying that bailout, according to data from Capital IQ.
But A.I.G. has been reducing its Blackstone stake for some time, including with the sale of about 10 million shares in 2010. On Friday, it sold the remaining shares in the open market.
Shares in Blackstone were down 3.5 percent in early-afternoon trading on Friday, at $15.18. A.I.G.’s stock was roughly flat at $29.45.
News of A.I.G.’s move was reported earlier by CNBC.