Searches and Hires

Japan’s GPIF hires StepStone to manage infrastructure fund-of-funds strategy

Japan's ¥156.8 trillion ($1.4 trillion) Government Pension Investment Fund hired StepStone Group to manage a core global infrastructure fund-of-funds strategy for the Tokyo-based fund.

A GPIF spokeswoman declined to provide details regarding the size of the mandate.

GPIF also hired Sumitomo Mitsui Asset Management Co. as "gatekeeper" for the global infrastructure mandate, responsible for middle- and back-office operations, said a news release Friday.

Sumitomo has the local investment management registration needed to be party to a discretionary investment contract, while U.S.-based StepStone does not. The spokeswoman said it wouldn't be right to call StepStone a subadviser of the infrastructure mandate.

StepStone becomes GPIF's second alternatives hire, following an April RFP seeking fund-of-funds managers for global private equity, global infrastructure, and both global and domestic real estate.

On Dec. 19, GPIF announced it hired Mitsubishi UFJ Trust and Banking Corp. to manage a core domestic real estate fund-of-funds strategy. Selections of managers for global private equity and global real estate have yet to be announced.

StepStone lifted out KPMG's infrastructure team, led by James O'Leary, a year and a half ago. The team manages more than $13 billion, according to StepStone's website.