Tokio Marine launches second global fund-of-funds

Tokio Marine Asset Management, the investment advisory arm of Japan’s Tokio Marine & Nichido Fire Insurance Co. is looking to raise $200 million from local institutional investors for a private equity fund-of-funds. The new fund will be the second global fund-of-funds Tokio Marine will be co-managing with Pathway Capital, its US partner.

The two fund investment advisors are currently managing a $125 million fund-of-funds established in September 2003, according to an official from Tokio Marine.

Soichi Takata, a senior fund manager at the private equity group of Tokio Marine Asset Management told PEO the first TMA/Pathway Private Equity Fund held a final close in February this year, after a relatively long marketing period, with commitments from six institutional investors from Japan.

Takata expects the investors from the first fund to increase their exposure to the new fund-of-funds. The TMA/Pathway Private Equity Fund II is targeting 10 to 20 institutional investors, he said.

Like its predecessor, which Takata expects will be fully committed by spring of 2007, 25 percent of the new fund of funds will be allocated to European funds and 75 percent to US funds. Seventy-five percent of the new fund-of-funds will be committed to funds investing in buyouts, distressed and or special situations, and the remaining 25 percent will be committed to venture capital funds, Takata said.

Tokio Marine Asset Management manages about $40 billion worth of investment across different asset classes. In addition to managing a fund-of-funds, the asset management company’s private equity group also selects funds on behalf of its clients.