Mitsubishi, the Japanese industrial conglomerate, has moved into the hedge fund industry through a joint venture with an established US manager, Aladdin Capital Holdings.

The joint venture will manage two new hedge funds. The first, with a target of $1bn (€800m), will invest in the leveraged debt market, comprising loan facilities issued by borrowers of high yield debt. The second will invest in the market for structured credit securities, a new and developing market.