Aozora Bank

The Japanese bank put PE investments on hold and talked about investment selection criteria.

JC Flowers-backed Shinsei Bank and Cerberus-owned Aozora Bank have terminated a merger agreement they signed in July 2009.

The banks, backed respectively by JC Flowers and Cerberus, will create Japan’s sixth largest banking group.

Japan's Shinsei and Aozora banks, in which JC Flowers and Cerberus Capital Management hold major stakes respectively, are reported to be nearing a union.

One of the firm’s portfolio companies, Aozora Bank, is a victim in the alleged Ponzi scheme, and the chairman of another portfolio company controls a feeder entity that may have lost $1.8bn to Madoff.

Monday is a public holiday in the US and UK, so we'll return to your inboxes on Tuesday. In the meantime, Terra Firma's Guy Hands reveals his biggest investment concerns, and a Nordic GP is beating the fundraising blues. Here’s today's brief, for our valued subscribers only.

Prime minister Shinzo Abe’s radical $116tn stimulus package has injected some hope into Japan’s economy. But are private equity firms likely to reap the benefits?

Prime minister Shinzo Abe’s radical $116tn stimulus package has injected some hope into Japan’s economy. But are private equity firms likely to reap the benefits?

Morgan Stanley Real Estate Investing has secured refinancing for a 13-hotel strong portfolio in Japan originally bought for ¥280bn in 2007.

The Dallas-based firm’s attempt to buy Japan’s first failed REIT is blocked for a second time by creditors. A rival bid from Daiwa House remains on the cards if New City can avoid liquidation.

Mark Neporent is alleged to have violated fidcuiary dutites at Kokusai Kogyo, a Cerberus-controlled JV. Cerberus has called the suit a means to pressure it to sell its stake.

A merger between JC Flowers-backed Shinsei and Cerberus-backed Aozora would create the country's sixth-largest bank.

Japan’s finance and economics minister has publicly stated his support for a proposed merger between the Aozora and Shinsei banks, in which the government holds significant stakes.