Orix Corp.'s new U.S. hedge fund business is expanding into private equity.
Orix USA Asset Management, set up earlier this year following Orix's acquisiton of Mariner Investment Group last year, has agreed to seed a new p.e. fund founded by a pair of Fortress Investment Group veterans. Orix will provide $150 million to New Health Capital Partners, it said.
The new private equity fund will be run by Richard Baxter and Aron Dantzig, who founded New York-based New Health last year. Orix will receive a stake in their management company in exchange for the seed investment.
"Partnering with Aron and Rich and their team gives Orix USA Asset Management a unique opportunity to invest in the healthcare and life sciences sectors and further highlights our commitment to the global asset-management industry," CEO Michael Blum, who joined Orix from Merrill Lynch two years ago, said.
New Health will focus on structured financing as well as buying majority stakes in healthcare companies.