Mitsubishi Takes Stake In Troubled Hedge Fund

May 5 2008 | 12:33pm ET

Mitsubishi Group, which in addition to its well-known automotive position is a Japanese banking and trading giant, is making a foray into hedge funds. Mitsubishi Corp., the company’s trading arm, has agreed to take a 19.5% stake in troubled hedge fund Aladdin Capital Holdings for US$40 million.

In addition to providing the credit-crisis-hit hedge fund with a much needed cash infusion*, Mitsubishi will also team with its new partner on a joint institutional investment fund, Japan’s Nikkei business newspaper reports, with Mitsubishi providing US$300 million to set the fund up.

The firms hope to boost the J.V.’s assets to US$5 billion within five years.

With its 19.5% stake, Mitsubishi is now the second-largest shareholder in Aladdin.

*Correction: Both Aladdin and Mitsubishi say the move was not a “capital infusion” and that Aladdin is not in trouble, rather the move involved Mitsubishi taking a stake in the firm. See: UPDATE


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...

 

From the current issue of