AIG Investments hires Citi exec for Japan

Amid the turmoil of its parent company, AIG's investment arm continues its Asian expansion with the hiring of Michael Chae.

AIG Investments has appointed Michael Chae to help guide the expansion of the firm’s alternative investment activities in Japan, where he will focus on private equity and distressed securities.

Chae, who will report to Stewart Homler, managing director of AIG's alternative investments in Japan, was most recently a director in Nikko Citi’s fixed income group.

“AIG Investments is looking to build their alternative investment capabilities in Japan, where they haven’t had a strong presence in the past,” an AIG Investments spokeswoman said. “We’re in the process of assessing demand and where AIG Investment’s expertise will fit in the market.”

The company wouldn’t comment about what specific sectors it is exploring. The spokeswoman also wouldn’t comment Monday about how the financial situation of AIG Investment’s parent company, American International Group’s, could impact the planned expansion in Japan.

AIG struggled for survival Monday as it feverishly searched for capital. New York State intervened and offered a plan to allow the nation’s largest insurance provider to lend itself $20 billion (€14 billion) to continue operating. Also, the federal government on Monday asked Goldman Sachs and JPMorgan to lead a $70 billion to $75 billion lending pool for AIG.

AIG Investments, the asset management arm of US insurance giant American International Group, manages more than $758 billion in assets.