The Japanese life insurer intends to raise its commitment to about $1.25 billion over three years, focused on private credit. Man Group shares rose about 6.6%.
Japanese insurance money is moving deeper into private credit, and this time it may come with an ownership stake.
Man Group said on Monday that Japanese life insurer Meiji Yasuda intends to increase its capital commitment to Man's strategies to ¥200 billion, about $1.25 billion, over three years, with a focus on private credit. Meiji Yasuda is also considering buying about 5% of Man Group through purchases on the open market.
The two firms plan to develop products together for Japanese investors, and Man will become a preferred asset management partner for the insurer. The arrangement builds on a partnership the two formed in February 2025.
Man Group shares rose about 6.6% in London.
Why an insurer wants a stake
A commitment of this size is a client relationship. A 5% stake is something more: it gives the insurer a share of the fees Man earns from all of its clients, not only from the money Meiji Yasuda places with it. For Man, a long-term strategic shareholder that is also a large client offers a steadier base of assets.
The move extends a pattern, noted by Reuters, of Japanese life-insurance money flowing into private credit through U.K. managers.
Part of a wider shift
The announcement came on the same day Apollo said it would take a minority stake in Mubadala Capital, the alternatives arm of Abu Dhabi's sovereign wealth fund. In both cases, large pools of capital are seeking a stake in the managers as well as access to their funds.
Two readings
One reading is that this is validation for Man's private credit business. A major insurer is increasing its commitment and considering a shareholding, and the market rewarded the news.
The other is that private credit is drawing heavy inflows at a time when regulators in some markets, including Australia, are scrutinizing how such funds are valued and sold. Investors buying the managers are taking on the same cycle risk as investors in the funds.
What to watch
Whether Meiji Yasuda proceeds with share purchases and any disclosure as its holding grows, the first products launched for Japanese investors, and Man Group's next update on private credit inflows.