Japan Post Bank, the $1.9 trillion financial services group, published its medium-term management plan in mid-May. Over the next three years, it plans to boost its exposure to alternatives investments to up to ¥8.5 trillion ($78 billion; €67 billion), to offset an expected decline in yields.
Below are three charts detailing the makeup of its target investment allocation.
Strategic investment areas include the investor’s existing alternatives programme, which comprises private equity, hedge funds and real estate equity. In addition, Japan Post Bank is planning to expand the remit to include direct lending funds, real estate debt funds and commercial mortgage-backed securities, the investor said in a report.
In February, Japan Post Bank and Japan Post Insurance set up their private equity investment company, Japan Post Investment Corporation, which will have up to ¥120 billion in investible capital. It will target a mix of overseas and domestic deals of between $10 million and $100 million across buyouts, special situations and late to growth-stage technology investments.
According to Taiichi Hoshino, senior managing director at Japan Post Bank, the investor will continue to act as an LP investing through primary and secondaries strategies. JPIC will act as its GP and make investments directly.