AIG Partners with CVC: $3.5B Private Markets Push via Secondaries & SMAs

On January 19, 2026, AIG and CVC announced a significant strategic partnership designed to give AIG greater exposure to and flexibility in private markets, especially credit and private equity secondaries. This move aligns with AIG’s broader trend of actively recasting its investment portfolio to boost returns, enhance capital efficiency and reduce legacy exposure.

Key financial mechanics: The agreement is built on two pillars. First, AIG will commit up to $1.5 billion to seed CVC’s new private equity secondaries evergreen platform using AIG’s existing private equity holdings. This enables AIG to transition its legacy positions into a structure offering liquidity and ongoing opportunities. Second, AIG will allocate up to $2 billion to customized private and liquid credit strategies via SMAs and funds managed by CVC, with a planned $1 billion deployed in 2026 under this allocation.

Strategic rationale and implications:

• The partnership addresses the challenge many insurers face of private equity assets maturing and being hard to manage: using secondaries evergreen vehicle provides ongoing liquidity and reduces liquidity and renewal risk.
• By using SMAs for credit strategies, AIG gains tailored exposure — conforming with its regulatory and capital constraints — while leveraging CVC’s credit origination across Europe and the U.S.
• Working with a European-headquartered manager reflects AIG’s recognition of increasing opportunity and expertise outside the U.S. among private markets managers, particularly as European regulators and capital markets evolve.
• The deal follows AIG’s other strategic repositioning moves, including its investments in Convex and Onex, and its acquisition of renewal rights across European commercial insurance books. These moves illustrate a broader willingness to use capital partnerships, minority equity stakes, and asset repositioning to drive returns outside traditional underwriting roles.

Risks and open questions:

• How well the evergreen secondaries platform will perform during market stress is uncertain: secondaries pricing varies markedly during cycles, and liquidity may be tested.
• Regulatory and capital charges for private credit and private equity can differ significantly across jurisdictions; alignment with AIG’s balance sheet requirements will be critical.
• Deploying $1 billion in SMAs in 2026 implies a tight schedule and sourcing capacity: execution risk may be high.
• The ultimate returns depend heavily on CVC’s ability to source high-quality credit and secondaries deals amid competition, valuation compression, and macroeconomic uncertainties.

Long-term implications:

• This deal may be a bellwether for other large insurers seeking to partner with European private markets managers; the attractiveness of SMAs and evergreen secondaries is likely to grow.
• AIG could increasingly shift away from owning legacy illiquid assets directly toward partnership or investment structures that are more capital-efficient and liquid.
• CVC enhances its position with insurers and institutional investors globally, particularly by demonstrating its ability to deliver bespoke solutions aligned with regulatory and capital needs.

Open strategic questions:

• What fee structures will be used in the evergreen secondaries platform and SMAs, and how will conflicts of interest be managed?
• What benchmarks will AIG use to assess success, especially versus traditional private equity dispositions or internal credit allocations?
• Will AIG seek similar partnerships with other managers or replicate this model across geographies?
• How will this affect AIG’s future internal investment staffing and capabilities?