Blackstone Ties Up With Nippon Life on Private Credit Investment
Blackstone Inc. has entered an agreement to provide Nippon Life Insurance Co. with investment services, adding to an increasing number of tie-ups between private investment firms and Japanese insurers.
As part of a memorandum of understanding, Japan’s largest life insurer will invest as much as ¥1.5 trillion ($9.4 billion) over five years in private credit and credit products through Blackstone, according to a statement Wednesday. Additionally, Blackstone could help manage up to a dozen of Nippon Life’s large urban properties through its real estate arm.
Global investment giants have been honing in on the Japanese insurance market, one of the largest in the world, to expand assets. Some firms including Apollo Global Management Inc.’s Athene Holding Ltd. have entered into reinsurance contracts with life insurers, while others like Blackstone have pursued third-party asset management agreements.
Japanese insurers are under pressure to diversify investments and boost returns as the return of inflation reshapes the investment landscape. Last July, KKR & Co.’s insurer Global Atlantic Financial Group raised $2 billion from Japan Post Insurance Co. to invest in its businesses.
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