Japan’s Nippon Life Insurance anticipates allocating about 1.5 trillion yen (about $10 billion) to Blackstone‘s private and structured credit strategies over the next five years.
The investment forms part of a broader strategic partnership between Nippon Life and Blackstone that will also cover real estate asset management and employee training, the companies said.
Under the agreement, Nippon Life will invest in Blackstone-managed private credit and structured credit strategies while also working with the US investment firm on initiatives tied to its domestic real estate portfolio.
In real estate, Blackstone will work with Nippon Life on initiatives in Japan, where the US firm is one of the largest foreign investors in the sector.
Nippon Life plans to target about a dozen properties, including large-scale urban assets, as it seeks to improve asset values with support from Blackstone’s real estate investment and asset management capabilities.
Blackstone president and chief operating officer Jon Gray described the agreement as one of the most significant multi-asset private credit partnerships in the Asia-Pacific region.
He said Blackstone, the world’s largest alternative asset manager with more than $1.3 trillion, will use its private credit and real estate platforms to support Nippon Life’s long-term investment objectives.
Blackstone announced early this week that it has raised $13.1 billion for its Asia private equity fund, exceeding its initial target and marking its largest such fundraise in the region.
Blackstone, which was targeting $10 billion for the fund named Blackstone Capital Partners Asia III, said it has raised more than double the amount of its previous vehicle.
Nippon Life, founded in 1889, is Japan’s largest private asset owner, overseeing more than 118 trillion yen in assets. The insurer has been expanding its overseas investments and alternative asset exposure in recent years.
Nippon Life President Satoshi Asahi said the partnership will help advance the group’s asset management strategy by giving it access to Blackstone’s investment capabilities and expertise.
“This will enable us to further enhance the value we provide to our clients and achieve the sustainable growth of our group, while contributing to the realization of Japan as a leading nation in asset management,” Asahi said.
Last month, Nippon Life and Sumitomo Mitsui Financial Group was reported to have started discussions towards launching a private credit fund for financing corporate acquisitions,
Nippon Life will be a main investor in the fund along with core SMFG unit Sumitomo Mitsui Banking Corp. Other investors would be sought, and the fund could raise around 500 billion yen ($3.13 billion).
