Japan Post Holding Co’s new $1.1 billion private equity fund plans to team up with global buyout firms such as KKR, Blackstone and Permira to invest in companies in Japan and overseas, a senior group executive said.

The Japan Post group announced in January it is setting up a private equity fund investment company, Japan Post Investment Corporation, with up to 120 billion yen ($1.12 billion) in an initial fund.

The move signals Japan Post Holding’s firmer commitment to alternative investments as its banking unit Japan Post Bank – which will provide seed money for the fund – faces diminishing returns amid persistently low interest rates.

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