Giving its clear vote of confidence in the U.S. credit market, Dai-ichi Life, Japan’s third-largest life insurance company, has announced a plan to invest $255 million in the credit fund managed by Canyon Partners, which oversees a wide variety of assets valued at $24 billion from seven office across the world.

Announced in March 2024, the decision comes amid uncertainty and volatility in the global economy and highlights Dai-ichi Life’s efforts to diversify its investment portfolio and identify sources of stable returns.

“This investment aligns with our long-term investment strategy to pursue attractive risk-adjusted returns for our policyholders while maintaining a diversified portfolio,” said Dai-ichi Life President and CEO Masahiro Hashimoto, who is committed to delivering value to its policyholders through astute investment decisions.

Canyon Partners, founded in 1990, has established itself as a prominent player in the alternative investment space, managing assets across various strategies including credit, distressed debt, and real estate. The firm’s track record of delivering consistent returns and managing risk effectively has garnered trust and confidence from institutional investors worldwide.

Dai-ichi Life’s investment in Canyon Partners’ U.S. credit fund happens as a growing number of Japanese institutions venture beyond the domestic market in search of investment opportunities.

This move by Dai-ichi Life reflects a broader strategy among Japanese institutional investors to diversify their portfolios and seek higher yields in international markets.

By tapping into Canyon Partners’ expertise and the resilience of the U.S. credit market, Dai-ichi Life hopes to deliver substantial returns to its shareholders.