American International Group (AIG) has agreed to divest AIG Advisor Group to investment funds affiliated with Lightyear Capital and Canadian pension investment manager PSP Investments.
Subject to customary regulatory and other approvals, the deal is scheduled to complete in the second quarter of 2016.
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As part of the agreement, Erica McGinnis will continue as CEO of Advisor Group, while Valerie Brown, former CEO of Cetera Financial, a portfolio company of Lightyear Fund, will join Advisor Group as executive chairman of the board.
Financial terms of the transaction have not been disclosed.
AIG Advisor Group is a broker-dealer in the US, with over 5,200 independent advisors and more than 800 full-time staff. It offers broker-dealer services, technology, and advisory programs through its four registered broker-dealers and registered investment advisors (RIAs).
Lightyear chairman and founder Donald Marron said: "Lightyear’s commitment to the asset and wealth management sector is substantial and one where we have a deep heritage. We look forward to working with Advisor Group and helping them expand the business."
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By GlobalDataPSP Investments senior vice president and global head of private investments Guthrie Stewart said: "We are pleased with this transaction, which is in line with PSP Investments’ private equity strategy of making sizable, direct investments in high-quality companies alongside experienced partners.
"We see multiple growth levers to drive Advisor Group’s future performance and look forward to collaborating with Lightyear and the Advisor Group management team to deliver on that plan."
