Aladdin Capital to dispose corporate credit funds to Mitsubishi

Aladdin Capital Holdings LLC is splitting off part of its asset management business into a new company majority
owned by Japanese trading firm Mitsubishi Corp.

Aladdin plans to sell its corporate credit hedge fund and bankruptcy-loan funds to MC Asset Management Holdings LLC, which will be 80 percent owned by Mitsubishi and 20 percent controlled by Aladdin founder Aminkhan Aladin. Stamford, Connecticut-based Aladdin Capital will go on managing about $9.6 billion of structured debt pools backed by assets including bank loans and corporate credit-default swaps, it said in an e-mailed statement.

“Aladdin’s related portfolio management teams will remain intact and the transition is expected to be seamless to investors,” the company said in the statement.

Mitsubishi already had close ties to the asset manager, having bought a 19.5 percent stake in Aladdin for $40 million in 2008 and providing initial seed money for the so-called debtors- in-possession funds that were started in 2010 with $573 million.

Among the assets Aladdin will continue to manage are collateralized loan obligations and other structured products that are backed by investment-grade bonds and mortgages.

Neal Neilinger, Aladdin’s chief investment officer, will become chief executive officer.

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Tags: hedge fund, asset management business, bankruptcy loan funds