Dai-ichi Life invests $176m in infrastructure debt fund

Japanese insurer Dai-ichi Life has committed 20 billion yen ($176 million) as the anchor investor in its second global infrastructure debt fund jointly launched with Asset Management One Alternative Investments (AMOAI).

Called Cosmic Blue PF Lotus FCP-RAIF, the new fund seeks to provide long-term stable income to institutional investors such as life insurance companies and pension funds, Dai-ichi Life said in a statement.

In a separate statement, AMOAI said it is targeting to raise around 100 billion yen ($878 million) for the vehicle, which is its second infrastructure debt fund.

The debt fund will expand its investment target from secondary to primary and will be involved in deals from origination. It would target infrastructure projects such as electricity, transportation, water supply, sewage systems, and hospitals.

AMOAI, the wholly-owned alternative investment arm of Asset Management One, is 30 per cent owned by Dai-ichi Life and 70 per cent owned by Mizuho Financial Group. Under the partnership, Mizuho will promote origination and distribution, catering to investors that have an increasing appetite for infrastructure projects.

Dai-ichi Life said it will aim to further improve investment returns by expanding infrastructure-related debt investments through the new fund. The insurance firm had 36.33 trillion yen of total assets at the end of March. Asset Management One had $503 billion in assets under management as of June 2018.