Based on MC's strengths as a sogo shosha, this division seeks to develop financial intermediation businesses to cater to the varied needs of customers and investors, amid ongoing changes in financial markets worldwide. The two main businesses are asset management and buyout investments.

The asset management business involves MC acting as a financial intermediary to service the diversifying requirements of customers and investors. Amid the flow of funds from savings to productive investments in Japan, the division is engaged in the sale and purchase of wide-ranging financial products. This often involves the establishment of joint platforms with top-notch partners based on relationships developed over years of investment-related activities. In May 2008, as an example, MC acquired an equity stake of 19.5% in Aladdin Capital Holdings LLC, a U.S. investment management firm that specializes in credit-related securitized products. We have committed up to US$300 million in seed capital for a new fund being established by this firm.

In the buyout investment business, by supplying risk capital and related services, we seek to support the development and growth of enterprises in industrial sectors that are expected to undergo realignment. In January 2008, in partnership with Meiji Rubber & Chemical Co., Ltd., we acquired the Flexitech Group, which manufactures and supplies automotive brake hose products to top automakers in Europe and North America. Flexitech holds a world-leading share of the global market in these products.

In April 2008, we established Marunouchi Capital in a joint venture with Mitsubishi UFJ Financial Group. The division has committed ¥50 billion in investment capital to the establishment of buyout funds by this venture. This buyout fund will have the capacity to make large investments, be backed by the credibility of the Mitsubishi Group, and boast the capability to provide solutions as a business enterprise and as a financial institution.