Japan lawmakers want pension fund to increase investment in domestic private equity, venture capital.

From Yahoo Finance: 2025-04-23 06:40:00

A group of Japan’s ruling party lawmakers are urging the country’s top public pension fund GPIF to increase investment in domestic private equity and venture capital funds. This move aims to strengthen the domestic private asset investment chain and keep profits from such investments within Japan.

Global private equity firms like KKR and Bain Capital have been successful in Japan due to corporate governance reform and government efforts for industry consolidation. However, Japanese private equity firms have limited presence, with Japan Investment Corporation often being the only domestic bidder in multi-billion-dollar deals.

Lawmakers propose that GPIF should boost its alternative investments, including domestic private equity and venture capital. They also suggest that domestic private equity funds should participate in large-scale mergers and acquisitions to enhance the country’s asset management industry.

Former Prime Minister Fumio Kishida initiated the policy group last year to strengthen Japan’s $5 trillion asset management industry. Alternative assets like private equity, property, and infrastructure currently account for only 1.6% of GPIF’s portfolio, well below the 5% limit.

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