Dai-ichi Life Holdings is set to increase its stake in UK hedge fund Capula Investment Management to approximately 15%, as part of a broader strategic shift toward bolstering its exposure to non-traditional and alternative investments, according to a report by Bloomberg.
The Tokyo-based insurer announced on Monday that the new investment – expected to complete in May – will raise its total holding in Capula from around 5% to 15%, including an existing position held through its subsidiary, Dai-ichi Life Insurance Co. As part of the move, Dai-ichi will designate Capula as an affiliated company and appoint a director to the hedge fund’s board.
Capula, which specialises in fixed income strategies and macro trading, will now play a larger role in Dai-ichi’s alternative asset platform as the insurer seeks to diversify returns beyond traditional equity and bond markets. While financial terms of the transaction were not disclosed, Dai-ichi expects to generate approximately JPY5bn ($34m) in annual equity income from the stake beginning in 2026.
The deal underscores a continued push by Japanese institutional investors to increase allocations to global hedge funds amid a prolonged low-yield environment at home. The investment also follows Dai-ichi’s 2024 acquisition of a 19.9% stake in US-based credit specialist Canyon Partners, further expanding its international hedge fund network.
