Private partnership buys AIG Rail Services
Written by William C. Vantuono, Editor-in-ChiefAmerican International Group late Monday announced the sale of AIG Rail Services to a division of Perella Weinberg Partners LP. Financial terms of the transaction were not disclosed.
New York-based Perella Weinberg Partners is a financial services firm that provides corporate advisory and asset management services to clients around the world. Launched in 2006, the firm is a private limited partnership with more than 330 employees.
As part of the transaction, certain funds within the Partners’ Asset Based Value strategy, currently valued at about $1 billion, have formed a new entity to purchase and manage AIG Rail Services Inc., which will be converted into a limited liability company as part of the transactions and continue operations under the name Flagship Rail Services LLC.
Eugene Henneberry, president and CEO of AIG Rail Services, will assume the title of president and CEO of Flagship Rail Services and will continue to run the business, along with AIG Rail Services’ existing management team. Subject to certain conditions, the transaction is expected to close in the second quarter of 2011.
Upon consummation of the transaction, the Perella Weinberg Partners Asset Based Value strategy will own more than 10,000 railcars that are deployed in the North American rail industry, making it the 9th largest lessor of railcars in that market.
Said Henneberry, “This transaction enables the AIG Rail Services employees and management team to partner with David Schiff and his team to continue providing our clients with the best-in-class service that they have come to expect. We are pleased to be joining forces with such an experienced team that shares our desire to grow Flagship Rail Services.”
Perella Weinberg Partners’ Asset Based Value strategy, since its inception in 2008, has grown to manage in excess of $1 billion in equity capital through a number of different investment vehicles.
