Japan's Government Pension Investment Fund hired Neuberger Berman's private equity arm, NB Alternatives Advisers, to manage a global diversified private equity fund-of-funds allocation.
A spokeswoman said it is GPIF's first private equity fund-of-funds allocation. She declined to reveal the size of the allocation.
The ¥169 trillion ($1.58 trillion) Tokyo-based pension fund has previously hired three fund-of-funds managers for infrastructure and two for real estate.
NB Alternatives Advisers will implement an "alternative investments 'multimanager' strategy for this asset class through a fund of funds to pursue fund investments and co-investments," said an announcement Thursday on GPIF's website. The fund also appointed Neuberger Berman East Asia its local manager, known as a gatekeeper, of the assets.
NB Alternatives Advisers' ADV filing with the Securities and Exchange Commission said the Dallas-based manager has $84.5 billion in assets under management.
GPIF's most recent portfolio update, for its fiscal third quarter ended Dec. 31, showed the pension fund with 0.49% of its portfolio, or ¥828.1 billion, allocated to alternative assets such as infrastructure, real estate and private equity, up from 0.37% three months before. Under current operating instructions, the pension fund can invest up to 5% of its portfolio in alternative assets.