Alternatives giant Blackstone has entered into a partnership with Nippon Life Insurance Company, with the potential for ¥1.5tn (£6.9bn) to be channelled into private credit.
Under the partnership, Blackstone, which manages $1.3tn (£966.8bn) in assets, will provide investment management services to Japanese insurer Nippon Life across private credit and real estate.
In private credit, Nippon Life, which has ¥118tn in assets, expects to allocate approximately ¥1.5tn of new capital to Blackstone over the next five years for deployment across private credit and structured credit strategies, the firms said.
In real estate, Blackstone’s position as one of the largest foreign investors in Japanese property will support Nippon Life in managing and enhancing around a dozen assets, including large-scale urban properties, both added.
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The tie-up comes as Japan and the wider Asia-Pacific region emerge as key growth markets for private credit, with managers expanding their local presence and expertise or launching region-focused strategies. It also reflects a broader trend of insurance companies increasing their exposure to private credit, attracted by its long-term investment profile and higher yields.
“We are deeply honoured to further strengthen our relationship with Nippon Life group,” said Jon Gray, president and chief operating officer at Blackstone. “This partnership represents one of the most significant multi-asset private credit partnerships in the Asia-Pacific region.”
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The two firms have signed a memorandum of understanding to formalise the partnership.
“We view this comprehensive strategic partnership with Blackstone as a critically important initiative to significantly advance our group’s asset management strategy,” said Satoshi Asahi, representative director and president at Nippon Life. “Building on the strong relationship of trust we have cultivated over the long-term, our organisation is positioned to benefit from the support of Blackstone’s investment capabilities and expertise.”
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