Japan\'s Mitsubishi to enter U.S. asset management business

Date: Wednesday, May 7, 2008
Author: Thomson Financial

Japanese Mitsubishi Corp. plans to enter the asset management business in the U.S. by setting up an investment fund with a hedge fund manager in which the trading house has agreed to take a stake, the Nikkei reported on Monday without citing sources.

Mitsubishi will spend $40 million to acquire a 19.5 percent stake in Aladdin Capital Holdings LLC, emerging as the second-largest shareholder, the business daily said.

In addition, Mitsubishi plans to invest $300 million to establish a hedge fund with Aladdin Capital.

By soliciting investment from institutional investors, such as Japanese regional banks, foreign government-affiliated investment funds and pension funds, the two partners aim to increase the fund's assets under management to around $5 billion within five years.

Established in 1999, Aladdin Capital manages around $20 billion of assets and is known for its expertise in corporate bond investment, the report said.

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