By Kosaku Narioka
Japan's Nippon Life Insurance plans to invest about $9.4 billion in Blackstone's credit strategies as part of a new strategic partnership.
Nippon Life said Wednesday that it expects to expand its allocation to Blackstone's investment-grade private credit and structured credit strategies, and that it plans to commit about 1.5 trillion yen, equivalent to $9.38 billion, to the U.S. alternative asset manager over the next five years.
Nippon Life also said it will leverage Blackstone's asset-management capabilities to boost the value of its real-estate holdings, as well as explore a collaboration on about a dozen properties, including large-scale urban assets.
Blackstone and Nippon Life said they signed a memorandum of understanding for the partnership and that Blackstone plans to provide investment management services in the private-credit and real-estate sectors.
Nippon Life aims to secure high-quality investment opportunities through the partnership, the company said, adding that it has been expanding alternative investments, including private credit, in response to the Japanese economy's shift away from prolonged low-interest-rate and deflationary conditions.
"This partnership represents one of the most significant multiasset private-credit partnerships in the Asia-Pacific region," Blackstone President Jon Gray said. "We will bring the full breadth of our capabilities to help advance Nippon Life group's long-term objectives."
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
06-03-26 0058ET
