Japanese pension fund seeks to increase PE exposure

Sofia Karadima
11 March 2019

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Japan's Government Pension Investment Fund (GPIF) has issued an RFP seeking alternative investment consultants as it seeks to increase its exposure to private equity, infrastructure and real estate.

The successful consultants will have responsibility for formulating GPIF's medium- and long-term investment strategies in alternatives, according to the 6 March request for proposal (RFP).

The ¥150tn ($1.5tn) fund can invest up to 5% of its assets in alternatives, which includes private equity. However, as of September 2018, alternatives only made up 0.18% of total assets.

The deadline to respond to the RFP is 28 March; the RFP can be found here.

Following GPIF's decision to enter the alternatives market a few years ago, it is expected that other government pension funds will establish alternative programmes.

Japan Post Bank also wants to increase its exposure to alternative investments to ¥8.5tn in the next three years, up from ¥1.5tn in June 2018. Japan Post Insurance is looking to commit ¥1.1tn to alternatives over the same period.