Mitsubishi Corp. to launch a buyout fund in the US - Brief Article

Japan, Inc., Nov, 2002

There was a time when foreign buyout funds were called vultures, buying up what was left of ailing "Japan Inc." Over the past few years, the buyout business has become more common in Japan and there are now many Japanese buyout funds buying up Japanese firms. But major trading house Mitsubishi Corp.

will launch a buyout business in the US. The company says it will establish a $150 million fund, Red Diamond Capital Partners, to buy small- to medium-size firms with annual sales of $30 million to $300 million. The Japanese media reported that the fund's focus will be "old economy" related businesses such as machinery and food makers. with Mitsubishi planning to buy ailing US firms, Japanese firms may become more active in the corporate revitalization business in the US.