UPDATE: Mitsubishi Takes Stake In Hedge Fund

May 7 2008 | 11:33am ET

Japanese banking giant Mitsubishi Group has taken a 19.5% stake in Stamford, Conn.-based alternative asset manager Aladdin Capital Holdings. Contrary to yesterday’s media reports, the move was not a capital infusion, and it follows several years of successful deal-making between the two firms, including Mitsubishi’s investments into several of Aladdin’s investment vehicles.

Under the terms of the latest agreement, Mitsubishi will become the second largest shareholder in Aladdin Capital by investing $39 million to acquire a 19.5% position in the firm.

“We have always had the greatest respect for Mitsubishi and are very excited about this development,” said Amin Aladin, president of the alternative investment firm, which specializes in fixed-income strategies. “We view this commitment from Mitsubishi as a powerful vote of confidence in Aladdin’s ability to manage investments in a challenging market environment and look forward to a long and mutually beneficial relationship.”

In addition to acquiring a share of Aladdin, Mitsubishi will also commit $300 million to be used as seed capital for other Aladdin investment products.

According to Mitsubishi, the timing of the investment couldn’t be better.

“We are excited about our partnership with Aladdin because we feel it will provide us with an ideal platform to capitalize on the numerous opportunities created by recent dislocations in the market,” said Hideshi Takeuchi, executive vice president of the Japanese firm.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...