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Japan’s Nippon Life invests US$100 million in Grove Street healthcare fund

Nippon Life
By Hui Ching-hoo   
September 28, 2020

Japan’s Nippon Life Insurance Company is investing US$100 million in a healthcare fund managed by US private equity manager Grove Street Advisors.

The fund, called Life Science Impact Program, will invest in high-quality venture capital funds, focusing on “companies that seek to generate an impact that will be useful in solving social issues mainly in fields such as the development of new drugs and medical equipment”, Nippon Life says in a statement on September 25.

The insurer is making the investment through its asset management arm, Nissay Asset Management Corporation.

“Through investment in this fund, we will accumulate knowledge related to measuring impact in the healthcare field together with Grove Street, and utilise the investment in the expansion and development of our company’s impact investment,” Nippon Life says.

Impact investing refers to investments in enterprises that generate social and environmental impact, in addition to financial returns.

Nippon Life made its first foray into impact investing two months ago by investing $20 million in an environmental and social impact fund overseen by US private equity manager TPG Capital.

Tokyo-based Nippon Life had 701 trillion yen ($6.64 trillion) of total assets as of June 2020.

Massachusetts-headquartered Grove Street Advisors has around $5.19 billion of total assets currently.