Part of American International Group’s plans to spin off part of its Life & Retirement business have come to fruition.

AIG and Blackstone said they have closed on a previously announced agreement for Blackstone to acquire a 9.9 percent equity stake in AIG’s Life & Retirement business and for Blackstone to manage an initial $50 billion of Life & Retirement’s existing investment portfolio.

In announcing the deal in July, AIG and Blackstone said the private equity firm would pay $2.2 billion in cash for the 9.9 percent stake.

Still to come: AIG has said it plans to use an initial public offering to sell an additional 19.9 percent portion of its life and retirement business.

AIG recently announced a number of leadership changes that it says help support the separation of the Life & Retirement business as well as the implementation of other strategic priorities.

Source: AIG