The Blackstone Group Inc. (NYSE:BX) reached a definitive agreement to acquire 9.9% stake in SAFG Retirement Services, Inc. from American International Group, Inc. (NYSE:AIG) for $2.2 billion on July 14, 2021. The consideration is subject to adjustment if the final pro forma adjusted book value is greater or lesser than the target pro forma adjusted book value and will be paid in cash. As part of this agreement, AIG also agreed to enter into a long-term strategic asset management relationship with Blackstone to manage an initial $50 billion of Life & Retirement's existing investment portfolio upon closing of the equity investment, with that amount increasing to $92.5 billion over the next six years. The transaction contemplates that most of AIG's investment operations would be transferred to SAFG or its subsidiaries as part of the separation. In a related deal, AIG agreed to Sell Certain Affordable Housing Assets to Blackstone Real Estate Income Trust, Inc. for $5.1 Billion. Upon the closing of these transactions, Jon Gray, President and Chief Operating Officer of Blackstone, will join the Life & Retirement Board of Directors. These transactions are subject to HSR approval and other customary closing conditions. The Transaction is expected to occur simultaneously by the end of the third quarter of 2021. Evercore and J.P. Morgan Securities LLC acted as financial advisors for AIG and its legal advisors are Edward D. Herlihy, David K. Lam and Mark A. Stagliano, T. Eiko Stange, Jeannemarie O'Brien and Alicia C. McCarthy of Wachtell, Rosen, Lipton & Katz and Marilyn Lion, Edwin Northover, John Vasily, Benjamin Lyon, Clare Swirski, Gregory Lyons, Jeffrey Robins, Alison Hashmall, David Sewell, Lorna Bowen, Marc Ponchione, Lawrence Cagney, Jonathan Lewis, Gary Friedman, Daniel Priest, Richard Ward, Timothy McIver, Jan Buschmann, Kimberly W. Lee and Kyra Bromley of Debevoise & Plimpton LLP. Goldman Sachs served as financial advisor, and Elizabeth Cooper, Katherine Krause, Peter Gilman, Nancy Mehlman, Greg Grogan, Jamin Koslowe, Brian Robbins, Jeanne Annarumma, Joshua Bonnie, William Golden, John Schueller, Peter Guryan, Rick Jamgochian, Kelly Karapetyan, David Blass, Genevieve Dorment, Lee Meyerson and Adam Cohen of Simpson Thacher & Bartlett LLP and Todd E Freed and Jon A Hlafter of Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisors to Blackstone. Morgan Stanley acted as financial advisor to The Blackstone Group Inc. in the transaction.

The Blackstone Group Inc. (NYSE:BX) completed the acquisition of 9.9% stake in SAFG Retirement Services, Inc. from American International Group, Inc. (NYSE:AIG) on November 2, 2021. Following the closing of the transaction, Blackstone will be entitled to designate one member of the board of directors of SAFG, which will consist of 11 Directors. Pursuant to the definitive agreement, Blackstone will be required to hold its ownership interest in SAFG following the completion of the separation of the Life and Retirement business, subject to exceptions permitting Blackstone to sell 25 %, 67 % and 75 % of its shares after the first, second and third anniversaries, respectively, of the initial public offering of SAFG (the IPO), with the transfer restrictions terminating in full on the fifth anniversary of the IPO.