By the end of the third quarter of its fiscal year, Japan Post Bank has already exceeded its full-year target for alternative investments, with the portfolio reaching 14.4 trillion yen ($91 billion) as of Dec 31, 2025.
The bank, whose financial year runs from April to March, had set a target of 14 trillion yen in strategic investments for the ongoing fiscal year, compared with 13.3 trillion yen in the previous year.
What it calls “strategic investment areas” covers private equity, real estate, direct lending and infrastructure debt funds. Of that, private equity funds accounted for 8.1 trillion yen ($53 billion), with 1.3 trillion yen in unrealised gains.
Across the entire operations, Japan Post Bank posted a net ordinary income increase of 110.3 billion yen year-on-year to 551.5 billion yen. Net income attributable to owners of the parent bank, at 377.6 billion yen, represents 80.3% of the original full-year earnings forecast.
In an earlier interview with DealStreetAsia, Hideya Sadanaga, Japan Post Bank’s Executive Managing Director and Head of Private Equity Investment Department, said that the bank has been allocating more to cash flow-generating assets such as mezzanine and infrastructure, which now constitute around 30% of its investments.
While the Japanese limited partner does not disclose third-party GPs it has backed, recent commitments include Japan Post Spiral Regional Innovation Fund, a joint venture fund with local VC firm Spiral Capital, and reportedly the sixth buyout vehicle of Basic Capital management, among global buyout names.
On the direct investment front, Japan Post Bank had engaged in private equity investments for institutional investors through Japan Post Investment Corporation. Last month, it announced to merge this unit with JP Asset Management, which focuses on investment trusts for individual retail customers, to form Japan Post Bank Asset Management.