JPMorgan To Sell Private-Equity Investments On Secondary Market

Jul 23 2014 | 1:07pm ET

JPMorgan Chase is in advanced talks to sell half of its interest in funds run by its private-equity arm in advance of a spin-off of that unit.

Lexington Partners and AlpInvest Partners are the probably buyers, The Wall Street Journal reports. The two would split about half of JPMorgan’s $4.5 billion investment in One Equity Partners’ funds.

The firms would also commit to investing in One Equity’s next buyout fund. JPMorgan has foresworn putting its own money up in such a future vehicle.

JPMorgan CEO Jamie Dimon said last week that a One Equity spin-off, originally announced last year, would be coming “soon.” The bank may retain some of its equity and investments in the business, Dimon said.

The timing appears to be right for JPMorgan Chase: private-equity fund stakes have been going for near net-asset value on the secondary market recently, according to the Journal.

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