Pantheon opens Tokyo office to service Japanese LPs

A local team of three will be led by Akitoshi Yamada (pictured) who joins the firm from Nippon Life as a managing director and head of Japan. Pantheon and StepStone Group were both awarded global infrastructure mandates by GPIF earlier this year. AVCJ understands Pantheon is also working with Japan Post Insurance on infrastructure investments. The office will perform client servicing and investor relations functions only.

Of the slew of Japanese institutions looking to build alternatives exposure, GPIF is by far the largest, with JPY162.7 trillion ($1.49 trillion) in assets as of 2017. It's unclear how quickly it will ramp up participation in the space, but the target allocation is 5%. Meanwhile, Japan Post Bank wants to increase the size of its alternatives portfolio from JPY1.5 trillion to JPY8.5 trillion in the next three years, while Japan Post Insurance is looking to commit approximately JPY1.1 trillion over the same period.

Smaller Japanese government pension funds are expected to follow GPIF’s lead, while financial institutions are increasing their allocations. It has prompted international asset managers to boost headcount with a view to servicing the needs of these institutions. A local presence is said to be a source of comfort - and perhaps at times a prerequisite - when competing for separate account mandates.

A few international GPs have also made permanent appointments in Japan, rather than taking the standard approach of working through a domestic partner. In Japan, a licensed local representative must attend all LP meetings with GPs and send formal marketing materials.

Ardian opened a Tokyo office in January, recruiting Kanji Takenaka from HarbourVest Partners – which was one of the pioneers, having set up a local presence in 2010 – to lead activities on the ground. Adams Street Partners, meanwhile, established a Japan office in 2014 and has been expanding coverage ever since. The firm recently hired its third local investment professional.

GPIF made its first call for applications from alternative managers in April 2017 and has since awarded one mandate for domestic real estate in addition to the two for global infrastructure. Government and corporate pension funds are required by law to operate through local gatekeepers, although GPIF is now able to invest in private equity funds and limited partnership-type structures directly.

“We are humbled to have been chosen by our Japanese clients to manage their private asset programs and look forward to furthering long and prosperous relationships with them. Our new local presence and outstanding team will further strengthen our commitment to deliver exemplary and highly responsive service to our Japanese clients,” Paul Ward, a managing partner at Pantheon, said in a statement.

As of December 2017, Pantheon had $38.8 billion in assets under management across primary fund commitments, secondaries, and co-investment. Its other Asian offices are in Hong Kong and Seoul.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• LPs
• People
• Fundraising
• Japan
• Pantheon
• Appointments