Mitsubishi seeds first US alternatives fund

Japan’s giant Mitsubishi Corporation is set to build its first large alternative investment manager in the US with hundreds of millions of dollars targeting shipping, aircraft, railway equipment leasing and commercial real estate through MC Asset Management.

Patrick Curran, president of Stanford, Connecticut-based group, said that while there was no dedicated amount for this initiative, Mitsubishi Corporation had a strong balance sheet and was committed to expanding the business.

The first deal for MC Asset, formed last year when Mitsubishi took over the long/short credit and distressed debt fund run by Aladdin Capital Holdings, came three months ago, with a $100m investment in a joint venture with alternatives manager Five Mile Capital Partners underwriting and originating commercial mortgages.

Curran told Financial News: “Many of the traditional providers of debt and equity capital are retreating because of regulatory and capital requirements for banks. “We are looking to add several investment teams over the next couple of years and believe institutional investors will consolidate their relationships with fewer, larger, brand-name entities.”