Singapore’s Temasek and the Hong Kong tycoon Richard Li are close to joining a consortium led by Franklin Templeton, the US fund manager, that is the front-runner to buy AIG’s asset management business for around $500m.

The move by the two Asian-based investors would enable the consortium, which is in exclusive negotiations to buy the insurer’s asset management unit, to tap into the vast riches of the region’s fast-growing upper and middle classes.