Former AIG chairman to set up 1b yuan private equity fund with Citic Securities
In a heady return to China for former American International Group boss Maurice Greenberg, his closely held investment vehicle Starr International will join Citic Securities, the mainland's largest-listed brokerage, in setting up a one billion yuan private equity fund to target Chinese companies before their initial public share offerings.
The brokerage, held by the state-owned conglomerate Citic Group, will spend up to 500 million yuan on a 50 per cent stake, while Bermuda-based Starr, AIG's largest shareholder, will spend a similar amount to take the remaining stake, the mainland firm said in a filing with the Shanghai Stock Exchange.
It said the board would authorise the management to sign the agreement later.
The venture is the first commercial comeback in China for Mr Greenberg since he was ousted in 2005 due to accounting irregularities as chairman of AIG. It is also the first international insurer to gain Beijing's permission to do business in the mainland.
A frequent visitor, he had developed close ties with many mainland officials, including former premier Zhu Rongji, since the country started its economic reform in 1978.
A source familiar with Mr Greenberg, 81, said he was eyeing many buying opportunities in China, including a hospital he wanted to buy through the joint venture and prepare for a listing. 'He never considers himself too old and has said he plans to work for another 20 years,' the source said.
