News
November 16, 2011
We are pleased to announce that TorreyCove Capital Partners LLC (TorreyCove), a subsidiary of Mitsubishi Corporation (MC), has entered into an agreement with PCG Asset Management (PCGAM) as management buyout by acquiring the advisory and fund management business of PCGAM together with PCGAM’s current management team. MC will own approximately 80% and the management team will own approximately 20% of TorreyCove.
PCGAM provides investment advisory and Fund of Funds management services for Private Equity investment (PE investment), mainly to financial institutions such as North American public pension funds. The operational assets of both above businesses before this acquisition are valued at about 20 billion U.S. dollars. MC has been in good business relations with PCGAM since 1998. MC started full-scale collaborations with PCGAM to launch a Fund of Funds that was established in 2000 for the first time in Japan; PCGAM also has been an advisor of two Fund of Funds (2004 & 2007 vintage year) managed by a subsidiary of MC, Alternative Investment Capital Limited (AIC).
PCGAM has for many years been providing high quality, tailor-made investment advisory services to North American public pension funds, who are pioneers in PE investments in the U.S. With this acquisition, MC will improve its pension fund advisory services, and aim to further advance global financial intermediary businesses through asset management. Compared to western countries, Japan has particularly been less-successful in establishing PE investments. From this viewpoint, we are looking to combine the sophisticated investment advisory services and products of TorreyCove (which it inherited from PCGAM) with the services and networks of MC’s financial subsidiaries. In doing so, we will strengthen and expand the financial service and product line-up to develop a policy that extends the range of PE investments in Japan.
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