Reuters – American International Group Inc’s asset management division has reached a joint venture agreement with Larch Lane to make seed funding investments in hedge funds.

The AIG Investments and Larch Lane venture expects to invest between $50 million and $200 million in each deal, according to a joint statement on Wednesday.

Larch Lane is an affiliate of Old Mutual Asset Management, the U.S. asset management group of Old Mutual Plc.

AIG Investments currently manages about $10 billion in hedge fund assets, spread among 130 hedge funds. Larch Lane has invested in 22 hedge fund start-ups over the last seven years, according to the statement.

"This venture gives us the opportunity to not only invest with up-and-coming managers, but to also participate more directly in the profit growth of a rapidly growing industry," said Robert Discolo, AIG Investments’ head of hedge fund strategies.

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