Japan's largest trading firm and biggest importer of liquefied natural gas, Mitsubishi Corp, had laid out plans to lead the start up of its first energy focused private equity fund. Aside from its capital infusion, the said fund would be backed up by institutions throughout the country.
The Energy Opportunity Fund LP plans to raise nearly USD300 million by September 2014. It would be managed by Alternative Investment Capital Ltd, whose majority shareholdings is owned by Mitsubishi Corp. This was confirmed by the fund manager through an email statement released today but was dated October 7, 2013. The fund would be focusing on the acquisition of North American energy assets.
Mistsubishi, together with its largest domestic competitor Mitsui & Co are boosting their energy portfolio as Japan continues to keep its nuclear energy industry on hold after its sordid experience at the Fukushima nuclear power plant. The two energy traders had signed an agreement with Sempra Energy, a US energy firm, for the development of a USD6 billion gas export facility located in Louisiana in the United States. Similarly, Mitsubishi had committed the same amount to another firm, Encana Corp for the gas development at Cutbank Ridge in the west coast of Canada.
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