Meiji Yasuda plans to buy 5% of Man Group — The Japan Times

Japanese insurer Meiji Yasuda Life Insurance plans to acquire a 5% stake in British investment group Man Group, the world’s largest publicly listed hedge fund. Such a stake is worth about £179 million, or $239 million, based on the closing price on October 23, The Japan Times reports.

Investment and partnership

Meiji Yasuda also intends to allocate ¥200 billion, or about $1.3 billion, to London-based Man Group for management over the next three years. This will be the Japanese insurer’s first major investment in a foreign asset management company.

The Man Group stake is planned to be purchased on the open market, without the issuance of new company shares. The investment includes a three-year lock-up period, while Meiji Yasuda’s total purchases will not be allowed to exceed 19.99% of Man Group’s issued share capital.

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Expanding asset management

Meiji Yasuda said the alliance is expected to strengthen its capabilities in private assets, quantitative investment strategies and artificial intelligence. The Japanese company will also gain access to Man Group’s expertise, technology knowledge sharing and advisory services from the Oxford-Man Institute.

For Man Group, the partnership is expected to support the development of its private credit platform and work with major insurance clients worldwide. The company’s assets rose to a record $270.9 billion in the previous quarter. Since the beginning of the year, its shares have gained 42%, while its market capitalization has reached £3.7 billion.

The deal comes amid increased activity by Japanese insurers in the international market. Earlier, Meiji Yasuda completed the acquisition of the U.S. unit of Britain’s Legal & General Group for $2.3 billion.