Japan’s Chikyoren appoints AIC as domestic PE manager

The $217bn pension awarded domestic PE mandates to Sumitomo Mitsui Trust Bank and Mitsubishi UFJ Trust and Banking Corporation last year.

Japanese pension fund Chikyoren has appointed Tokyo-based fund of funds manager Alternative Investment Capital as its manager for domestic private equity, according to a statement.

Financial details were not disclosed.

Chikyoren, also known as Pension Fund Association for Local Government Officials, issued a request for proposal for private equity, infrastructure, real estate and debt managers in July.

The $217 billion pension has a 0.4 percent exposure to alternatives out of a 5 percent target allocation, according to PEI data.

Chikyoren appointed Sumitomo Mitsui Trust Bank and Mitsubishi UFJ Trust and Banking Corporation as its domestic private equity managers last year.

AlC, Japan’s first fund of funds, was established in 2002 as a joint venture between Mitsubishi Corporation and Daido Life Insurance Company.

Sumitomo Mitsui Banking Corporation owns about 40 percent. Daido Life has a 36 percent shareholding; Mitsubishi Corporation owns 20 percent and Mitsubishi UFJ Trust and Banking owns 4 percent, according to AIC’s website.

AIC manages over $3 billion in assets across private equity and infrastructure and has backed funds managed by Ironbridge Capital and KB Partners, according to PEI data.

In 2016 the firm began fundraising for its third Asia-focused fund of funds vehicle AI Capital which has a target of ¥15 billion ($143 million; €123 million).

It is unclear how much AI Capital Japan III has raised and the firm could not be reached for comment by press time.