GPIF looks for PE and infrastructure managers

12 April 2017   Category: News, Asia, Global, Japan   By Asia Asset Management

Japan’s Government Pension Investment Fund (GPIF) has introduced a new registration system for managers of alternative assets as part of a move to diversify its asset allocation to alternative investments, including private equity (PE) and real estate.

GPIF says on its website on Tuesday (April 11) that the system is to collect information about various investment strategies, and to have more flexibility on manager selection. It is also aimed at getting access to new investment ideas and expertise.

Under the system, alternative assets are divided into three major classes: PE, infrastructure, and real estate.

GPIF says it’s looking for managers with experience in diversified investments in PE funds with various strategies, and global-core infrastructure managers with capability in diversified investments in core or brownfield infrastructure funds.

The pension fund is also seeking real estate managers with expertise in diversified investments in core-type real estate funds in Japan and other developed countries.

GPIF says all qualified applicants must have at least 100 billion yen (US$902.6 million) in foreign and domestic pension AUM. Applicants without that minimum threshold must have AUM from other institutional investors, such as financial institutions and foundations, of more than 100 billion yen.

Eligible managers must also have a five-year track record in related mandates; their current mandate size must be at least 30 billion yen.

The launch of the registration system coincides with GPIF’s move to raise its exposure to alternative investments.

GPIF President Norihiro Takahashi told Reuters in January that the pension fund could invest up to 5% of its total assets in PE and infrastructure projects as at end-September 2016, compared to just 0.04% at the end of 2015.

GPIF reported a record 7.98% in investment return for the quarter ended December 31, 2016, boosting its total AUM to a record 144.8 trillion yen.