Insurer American International Group (AIG) announced it was hiving off a portion of its investment advisory and asset management business to Hong Kong-based Bridge Partners.

The $500 million disposal comes as AIG continues to restructure following an $85 billion bailout from the US government last year after losing money on its credit default swap portfolio and securities lending operation.

Bridge Partners will acquire AIG's asset management businesses in 32 countries, with around $88.7 billion assets under management (AUM) in private equity funds, funds of hedge funds, listed equities and fixed income.

However, AIG is retaining its in-house investment operation which has approximately $480 billion AUM.

In a statement AIG said the purchase price consisted of a cash payment of approximately $300 million at closing, plus additional future consideration that included a performance note and a continuing share of carried interest.

Bridge Partners is owned by private investment firm Pacific Century Group, headquartered in Hong Kong. The group has interests in sectors including infrastructure, property, satellite communications in the Asia Pacific region, including Singapore, Hong Kong and Japan.

The business's existing management team will remain in place with Win Neuger as chief executive officer.

Meanwhile, Monika Machon will continue as AIG's chief investment officer, overseeing the insurer's in-house investment operation.

AIG senior vice president of divestiture Alain Karaoglan said the disposal would achieve the "greatest long-term stability and potential for the business".

The deal is subject to receipt of regulatory approvals and other consents.