American Insurance Group’s global real estate division has put its $12bn (€9bn) fund management group up for sale as part of a five-year plan to repay an $85bn government loan bailout.

Merrill Lynch and Bank of America are advising AIG on the sale of Global Real Estate's fund management business, which had 15 funds with over $12.4bn in assets under management and $5.2bn in equity capital commitments as of September 30. It has operations in operations in Europe, Japan, Latin America and Asia.