Key Takeaways
- • Nissay Asset Management plans to hire 5–7 professionals to expand its private equity and alternative investment capabilities, increasing headcount in this division from approximately 30 employees.
- • The firm manages more than ¥2.5 trillion ($17 billion) in alternative assets, positioning it as a significant player in Japan's shift toward non-traditional investment vehicles amid policy pressure to redirect household savings away from bank deposits.
- • Global alternative asset markets are expected to reach $29 trillion by 2029, according to Preqin data, reflecting sustained institutional and retail demand despite rising interest rate environments in Japan and globally.
- • Kaoru Onishi, head of global products at Nissay Asset Management, projects that alternative assets will remain attractive to Japanese investors even as Bank of Japan rate hikes improve returns on traditional fixed-income products, citing portfolio diversification as a key driver of sustained demand.
- • The hiring initiative reflects a broader industry trend among Japanese asset managers to boost returns during a period when policymakers actively encourage households to shift savings into investments.
Summary
Nissay Asset Management, the asset management subsidiary of Japan's largest insurer Nippon Life, is expanding its alternative investment team with plans to hire 5–7 new professionals specializing in private equity and infrastructure finance. The firm currently employs approximately 30 staff members in its alternative investment business and manages more than ¥2.5 trillion ($17 billion) in alternative assets for clients, according to Kaoru Onishi, head of the global product division.
Onishi acknowledged the talent constraint facing the industry, noting that "it is an expanding field" with limited pools of experienced professionals. Rather than exclusively pursuing established specialists, Nissay plans to develop new hires' expertise internally, a strategy underscoring both the scarcity of seasoned talent and the firm's confidence in organic capability-building. This hiring push occurs as Japanese policymakers encourage households to redirect savings from traditional bank deposits into investment vehicles, creating favorable market conditions for alternative asset managers.
The timing reflects a structural shift in global capital markets. Alternative assets under management are projected to climb above $29 trillion by 2029, according to analytics firm Preqin, driven by strong investor demand for higher-risk, higher-return products. Onishi, who has spent nearly three decades with the Nippon Life group and spent 2002–2005 in New York establishing the insurer's private equity operations, maintains that rising interest rates will not deter Japanese investors from allocating capital to alternatives. Though Bank of Japan rate increases—which have brought rates to 0.5% following March 2024's first hike ending eight years of radical monetary stimulus—will improve traditional bond returns, she expects investors to maintain diversified exposure to alternative products regardless of rate environment.
This expansion aligns Nissay Asset Management with broader industry positioning to capitalize on regulatory and demographic tailwinds reshaping Japanese wealth management while competing for limited specialized talent in a growing market.
Onishi acknowledged the talent constraint facing the industry, noting that "it is an expanding field" with limited pools of experienced professionals. Rather than exclusively pursuing established specialists, Nissay plans to develop new hires' expertise internally, a strategy underscoring both the scarcity of seasoned talent and the firm's confidence in organic capability-building. This hiring push occurs as Japanese policymakers encourage households to redirect savings from traditional bank deposits into investment vehicles, creating favorable market conditions for alternative asset managers.
The timing reflects a structural shift in global capital markets. Alternative assets under management are projected to climb above $29 trillion by 2029, according to analytics firm Preqin, driven by strong investor demand for higher-risk, higher-return products. Onishi, who has spent nearly three decades with the Nippon Life group and spent 2002–2005 in New York establishing the insurer's private equity operations, maintains that rising interest rates will not deter Japanese investors from allocating capital to alternatives. Though Bank of Japan rate increases—which have brought rates to 0.5% following March 2024's first hike ending eight years of radical monetary stimulus—will improve traditional bond returns, she expects investors to maintain diversified exposure to alternative products regardless of rate environment.
This expansion aligns Nissay Asset Management with broader industry positioning to capitalize on regulatory and demographic tailwinds reshaping Japanese wealth management while competing for limited specialized talent in a growing market.
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