Friday, 27 March 2015
Last updated 4 hours ago
Jun 17 2013 | 2:40pm ET
JPMorgan Chase will spin off its internal private-equity unit, which manages some $4.5 billion of the bank's capital.
One Equity Partners, which until now has managed JPMorgan's money exclusively, will raise a new fund entirely from outside investors and will separate from the bank. One Equity will continue to manage the roughly 30 investments it currently has for JPMorgan.
The bank is shedding the unit due to recent uneven returns and a desire to focus on its core businesses. The spin-off has nothing to do with the Volcker Rule, which severely restricts banks' hedge fund and private-equity activities; because One Equity manages only JPMorgan's money, it could hold on to the unit under merchant-banking regulations.
"I am confident they will continue to be extremely successful," JPMorgan CEO James Dimon said in a statement.
JPMorgan acquired One Equity in 2004 when it bought Bank One Corp., deciding to hold onto it rather than its own private-equity business. But One Equity has lost money in four out of the last eight quarters, including a $182 million net loss in the first quarter.
Bank One set up One Equity in 2001 under Dick Cashen. Cashen, formerly president of Citigroup Venture Capital, is reportedly close to Dimon.
One Equity usually invests between $50 million and $250 million per transaction. It has nine offices around the world.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…