17 December 2012
Aladdin Reaches Settlement with the SEC
Stamford, Connecticut December 17, 2012 — Aladdin is pleased to announce today that it has entered into a settlement with the United States Securities and Exchange Commission (the “SEC”) concerning the placement of two collateralized debt obligation (“CDO”) transactions that were marketed by Aladdin in late 2006 – the Fortius II Funding Ltd. CDO (“Fortius”) and the Citius II Funding Ltd. CDO (“Citius”). Along with other steps recently taken by Aladdin, the settlement with the SEC is a continuation of Aladdin’s strategic plans to reposition its business.
The matter resolved today concerned allegations that Aladdin stated it would co-invest alongside its clients in the equity tranches of transactions it managed, but failed to make co-investments totaling approximately $1.3M in the Fortius and Citius CDOs. Aladdin settled the matter without admitting or denying the SEC’s allegations.
Aladdin co-invested in more than a dozen transactions in which it represented that it would co-invest from 2005 through 2009. In the fall of 2006, the member of Aladdin responsible for reserving funds for Aladdin’s co-investments failed to ensure that Aladdin reserved or allocated the funds to make the co-investments in the Fortius and Citius CDOs. This individual is no longer with the firm.
Aladdin was founded in 1999 to provide innovative investment products for sophisticated investors around the world. Aladdin founder and shareholder Amin Aladin said, “We are pleased to settle a legacy issue concerning the placement activities of Aladdin’s former employees. We have worked hard with the SEC over the past two and a half years to try to resolve this issue, and we are happy to be able to move forward. We would like to thank the SEC for its professionalism and courtesy throughout this process.”
17 November 2011
Aladdin Capital Holdings LLC Announces Sale of Assets to Mitsubishi Corporation
Stamford, Connecticut - November 17, 2011 - Aladdin Capital Holdings LLC (Aladdin) is selling certain non-core businesses and assets to Mitsubishi Corporation (MC), which will form the core businesses of a new entity, MC Asset Management Holdings, LLC. The new company will be jointly owned by MC and Aminkhan Aladin, the current founding chairman and CEO of Aladdin.
Aladdin will continue as a structured fixed income asset manager, retaining its focus on core businesses and strategies, including collateralized loan obligations (CLOs), collateralized debt obligations (CDOs), other structured products (e.g., asset-backed, mortgage-backed and commercial mortgage-backed securities), corporate synthetic portfolios and other opportunistic investment strategies within Aladdin’s core competencies. Aladdin’s related portfolio management teams will remain intact and the transition is expected to be seamless to investors.
The proposed transaction remains subject to certain customary closing conditions.
Aladdin is headquartered in Stamford, Connecticut and will continue to manage $9.6 billion in assets for a global client base.