Pension fund adviser Yasushi Ando says Japan's GPIF should put $95 billion in private equity

By VCPOST Staff Reporter

Dec 26, 2013 08:57 PM EST

Japan's state pension fund should look at investing ¥10 trillion ($95 billion) in private equity and venture capital over ten years, a government adviser on pensions said. The Government Pension Investment Fund (GPIF) is the world's largest with ¥124 trillion under management.

Bloomberg, quoting Liberal Democratic Party adviser on pensions Yasushi Ando, said that GPIF should start by putting as much as ¥3 trillion in private equity and venture capital by April 2014. Ando said that this should be increased to ¥10 trillion by 2023.       

The said investments would bring the fund in line with global standards, according to Ando. Ando is also the chief executive officer of Tokyo-based buyout firm New Horizon Capital Co., the report said.

Meanwhile, a panel led by Japanese economist Takatoshi Ito said that GPIF should seek higher returns through risk assets. Japan is reportedly targeting a 2% inflation that would erode the value of its ¥71.9 trillion in domestic bonds, Bloomberg said.

The panel said that the state pension fund should consider real estate investment trusts and private equity. GPIF currently has no holdings in private equity, the report said.       

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