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(Adds comment from Aladdin statement in third paragraph.)
Nov. 18 (Bloomberg) -- Aladdin Capital Holdings LLC, the investment firm that shut its broker-dealer unit this year, said it will continue as a fixed-income asset manager after agreeing to sell certain assets to a new company owned by Mitsubishi Corp. and Aladdin founder Aminkhan Aladin.
Aladdin Capital will maintain management of $9.6 billion including bank loan pools known as collateralized loan obligations and other structured debt from mortgage-backed securities to collateralized debt obligations backed by corporate credit-default swaps, according to an e-mailed statement today from the Stamford, Connecticut-based firm. Neal Neilinger, Aladdin’s chief investment officer, will become chief executive officer.
“Aladdin’s related portfolio management teams will remain intact, and the transition is expected to be seamless to our investors,” the company said in the statement.
The firm said it anticipates that its sponsored corporate credit hedge fund and debtors-in-possession private-equity funds will be transferred to the Mitsubishi venture, subject to closing conditions. The assets would be placed in a company called MC Asset Management Holdings LLC. That company will be 80 percent owned by Mitsubishi and 20 percent owned by Aminkhan Aladin, Mitsubishi Corp. said yesterday on its website.
Mitsubishi was among initial investors in Aladdin’s debtor- in-possession loan funds, which were started in 2010 with $573 million and run by former Goldman Sachs Group Inc. banker Luke Gosselin and Victor Russo, previously president of CIT Group Inc.’s business-credit unit.
Aladdin, created in 1999, said the structured debt business has remained its core focus as it scales back from more recently created ventures.
The company in July started shutting its brokerage unit as boutique firms that match debt securities trades were squeezed out of the market by Wall Street’s biggest banks.
--Editors: Mitchell Martin, John Parry
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