Japan’s ruling Liberal Democratic Party wants the country’s massive pension apparatus to start putting more money to work at home. The LDP submitted a formal proposal in April 2025 urging the Government Pension Investment Fund, better known as GPIF, to ramp up allocations to domestic private equity and venture capital.
GPIF manages roughly $1.7 to $1.8 trillion in assets, making it the single largest pension fund on the planet.
The domestic investment pivot
The proposal is part of Japan’s broader ambition to transform itself into what officials have called an “asset management nation.” By channeling more capital into domestic PE and VC, the thinking goes, Japan can simultaneously boost its startup ecosystem and retain investment profits within its own borders.
Currently, GPIF has capped alternative investments, which include private equity, real estate, and infrastructure, at 5% of its total portfolio. That target is set for achievement by 2030. To put that in dollar terms, 5% of $1.7 trillion is roughly $85 billion.
