Private Equity News & Analysis

Mitsubishi commits $42.5m to joint-venture’s new fund-of-funds

Mitsubishi Corporation has committed ¥5 billion to a fund of funds being raised by Alternative Investment Capital, a joint venture formed with Daido Life Insurance .

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Mitsubishi Corporation and three other institutional investors have committed ¥12.1 billion ($103 million; €81 million) to a fund raised by Alternative Investment Capital (AIC) of Japan, a fund-of-funds manager,

AIC, a joint-venture between Japan’s Mitsubishi and Daido Life Insurance Company, is raising its third fund of funds with a target of ¥20 to ¥30 billion, about double the size of its debut fund of funds.

The Tokyo-based manager held a first close for the new fund-of-funds in August on ¥12.1 billion.

Mitsubishi Corporation committed ¥5 billion, while Daido Life, Mitsubishi UFJ Trust and Banking Corporation, and Mizuho Corporate Bank contributed the remaining ¥7.1 billion.

AIC intends to market ‘AI Capital Japan II’ outside Japan, in the US and Europe specifically, according to a company official. Fund I comprised only domestic investors.

Up to 30 percent of Japan II will be allocated for investments in non-Japan Asian funds, slightly higher from a 20 percent ceiling in Japan I, Motoya Kitamura, vice president of AIC said.

Between the two Japan fund-of-funds, in 2004, the Japanese manager raised $152 million for ‘AIC-PCG Global Private Equity Fund I’ to invest in US and European funds.