Dai-ichi Life Holdings plans to increase its stake in London-based hedge fund Capula Investment Management to 15%, a move that would make the firm an equity-method affiliate. The Japanese insurer’s subsidiary currently holds just under 5% of Capula and will acquire an additional 10%-plus interest this month for an undisclosed amount.
Founded in 2005 by former UFJ Bank employee Masao Asai, Capula manages approximately $35 billion in assets and has become a significant player in Japanese government bond trading. The firm specializes in relative-value investing and crisis alpha strategies that aim to profit during market downturns.
The investment comes as global financial markets face volatility from President Trump’s tariff policies, which have complicated monetary policy forecasting for both the Federal Reserve and Bank of Japan. Japanese insurers are particularly challenged by rising yields on ultralong-term government bonds.
For Dai-ichi, this represents another step away from its traditional life insurance business in Japan’s mature market. The company has been building an investment portfolio that includes 2023’s acquisition of private debt manager Topaz Capital and a 2024 investment in US-based Canyon Partners.
The company intends to send a director to Capula as it pursues a strategy to increase its adjusted return on equity from 8% to approximately 10% by fiscal 2026.
