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JPMorgan close to selling One Equity Partners

BBR Staff Writer Published 23 July 2014

US-based financial services company JPMorgan Chase is reportedly close to selling half its stake in the portfolio of its private equity business, One Equity Partners

JP Morgan

Sources with the knowledge of matter were quoted by The Wall Street Journal as saying that the bank is in advanced talks with Lexington Partners and Carlyle Group's AlpInvest Partners to sell half of nearly $4.5bn in investments One Equity manages for the bank.

The potential buyers are likely to commit cash to One Equity's next buyout fund as part of the anticipated deal, the sources added, without disclosing the amount and whether other investors may join the buyers.

During a conference call last week, JPMorgan chairman and chief executive James Dimon had told that a deal would be signed soon and also noted that the bank may not sell all of its interests in One Equity funds.

The New York-based bank has been holding discussions with various buyers of second-hand private-equity investments since revealing that One Equity would become independent in June 2013.

Founded in 2001, One Equity was originally integrated to Chicago-based Bank One, and was inherited by JPMorgan as part of its 2004 acquisition of Bank One.

Kept as in-house buyout arm, One Equity has to date managed about $14bn in total investments and committed capital for JPMorgan, as reported by RTT News.

JPMorgan reported $36m in second-quarter revenue from One Equity last week, which is very less compared with $410m posted a year earlier, according to the news agency.

Commenting on results, Dimon said: "It hasn't earned much money in the last few quarters."

One Equity sale forms part of JPMorgan's efforts to focus more on its core businesses.


Image: JPMorgan Chase is close to selling half of its stake in the portfolio of One Equity Partners. Photo: courtesy of Americasroof.