Japan’s Dai-ichi Life has announced plans to acquire additional stake in UK-based hedge fund Capula Investment Management and Capula Management (together called Capula), increasing its total ownership to 15%.
The Dai-ichi Life Insurance Company, a subsidiary of Dai-ichi Life, currently holds a 4.7% share in the UK alternative asset manager.
This move is part of the Tokyo-based life insurer’s strategy to bolster its capacity to manage non-traditional assets effectively.
Capula, established in 2005 by Yan Huo and Masao Asai, specialises in fixed-income arbitrage, crisis alpha, and global macro strategies.
With headquarters in London and offices across Japan, the US, Hong Kong, and Singapore, Capula employs 408 executives and staff, including 142 investment professionals.
As of 2024, the firm managed assets totalling approximately Y4.8tn ($31.8bn).
The firm’s fixed-income arbitrage fund Global Relative Value Master Fund has achieved an average annual return of 8.29% since its inception in 2005.
As part of the transaction, a “board of partners member” from Dai-ichi Life will join Capula.
Upon deal closing, Capula will become an equity-method affiliate of Dai-ichi Life.
The completion of this transaction is expected in May, and Dai-ichi Life anticipates that the stake acquisition will generate equity income of approximately Y5bn ($34m) in FY2025.
Dai-ichi Life is pursuing inorganic growth opportunities in the asset management sector, aiming to reach a group corporate value of Y10tn and a profit target of Y600bn by 2030.
This development follows the company’s acquisition of a 19.9% stake in Canyon Partners, a US-based fund with credit expertise, in March 2024.
“Dai-ichi Life to raise stake in UK asset manager Capula to 15%” was originally created and published by Private Banker International, a GlobalData owned brand.
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