Mitsubishi UFJ Financial Group is seeking to acquire alternative asset managers as more client money flows into non-traditional investments.
Japan's biggest bank has seen a big increase in bets on private assets such as real estate and infrastructure as customers try to diversify portfolio risks, said Takayuki Yasuda, head of MUFG's asset management and investor services business group. "We haven't been able to meet demand," he said in an interview.
Private assets have garnered attention after last year's slump in global bonds and stocks called into question the viability of traditional 60/40 portfolios. MUFG has already been snapping up alternative asset managers, most recently in March with the deal to acquire Europe's AlbaCore Capital Group through its First Sentier Investors unit.
"Our target is in private asset areas," Mr. Yasuda said. "For instance, we have infrastructure equity products offered by FSI, but there are blank fields in infrastructure debt," he said, referring to Sydney-based First Sentier Investors, which it purchased in 2019 for about A$4 billion ($2.7 billion).
MUFG operates asset management companies in Japan and abroad, serving retail and institutional clients like pension funds. With about 100 trillion yen ($743 billion) in assets under management, it's among the biggest Japanese firms in the industry.