UPDATE 2-GE Capital forms strategic relationship with Mitsui

Wed Jul 27, 2011 12:24am EDT

* Mitsui will invest $200 mln in private equity-sponsored loans

* Mitsui intends to raise funds from Japanese institutional investors

* GE and Mitsui will explore areas such as OEM financing (Recasts, adds detail, quotes)

July 27 (Reuters) - GE Capital said late on Tuesday it has partnered with Tokyo-based Mitsui & Co , to establish an investment management program to co-invest in U.S. commercial finance assets.

GE Capital said Mitsui will invest $200 million of its own capital in private equity-sponsored loans in the first year of the program. Mitsui also intends to raise funds from Japanese institutional investors and manage the investment management program, GE Capital said.

The investments are expected to include private equity-sponsored loans as well as big-ticket equipment loans and leases, and bank loans.

"We believe it can lead us to considerable expansion of strategically attractive investment opportunities that had not previously been available to us," said Atsushi Kume, chief operating officer of the financial and new business unit at Mitsui.

Meanwhile, Mitsui and GE Capital will also explore global opportunities in areas such as financing for original equipment manufacturers and renewable energy. (Reporting by Sakthi Prasad in Bangalore; Editing by Matt Driskill)

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