Meiji Yasuda Life Insurance plans to acquire a 5% stake in Man Group and allocate $1.3bn over the next three years, as part of a strategic partnership aimed at expanding its alternative investment capabilities, according to a report by Bloomberg.

The proposed stake is valued at approximately £179m ($239m), based on Man Group’s closing share price on 23 October, and will be acquired through open-market purchases rather than newly issued shares. The investment will be subject to a three-year lock-in period, with Meiji Yasuda’s ownership capped at 19.99%. Man Group shares rose as much as 4.9% following the announcement.

The partnership will provide Meiji Yasuda with access to Man Group’s expertise in quantitative strategies, private markets and artificial intelligence, alongside investment advisory services through the Oxford-Man Institute. For Man Group, the agreement supports the expansion of its private credit platform and efforts to attract institutional capital from global insurance clients.

The deal follows a period of strong asset growth for Man Group, which reported record assets under management of $270.9bn in the third quarter, supported by inflows into its hedge fund and long-only strategies alongside investment performance. Its shares have gained 42% this year, giving the firm a market capitalisation of approximately £3.7bn. The agreement also reflects growing interest among Japanese insurers in overseas asset managers as they diversify investment portfolios and seek new sources of returns.