Aladdin agrees to sell assets to Mitsubishi Corporation

Aladdin Capital has announced today that it is selling non-core business and assets to Mitsubishi Corporation. The assets are expected to include a corporate credit hedge fund as well as a debtor-in-position fund. The new entity set up by Mitsubishi Corporation will be named MC Asset Management Holdings and will be jointly owned by the bank and Aladdin founder, Aminkhan Aladin.

Aladdin Capital on the other hand will continue to operate as an asset manager, focusing on its CLO platform as well as a handful of CDOs and CSOs.

Both Aladdin and Mitsubishi Corporation are reported to have been in discussions over the transaction for some time. The Japanese bank has a strong relationship with the Stamford-based manager, and had a large stake in the company. This dates from May 2008, when the Japanese institution put $300 million into funds managed by Aladdin and also bought a stake in the company for $39 million.

In recent months Aladdin has also disbanded its broker-dealer unit with the decision made to concentrate on its core asset management business. Aladdin currently holds $9.6 billion of assets under management.