JPMorgan Chase and fund of hedge funds shop Arden Asset Management have struck a deal under which Arden will manage some $1.1 billion of the Wall Street giant’s own capital.

JPMorgan will invest in New York-based Arden’s flagship fund of funds, and will also seed several new funds for the firm. In addition, Shakil Riaz, head of JPMorgan’s proprietary fund of hedge funds group since its creation 14 years ago, will move to Arden. The deal takes effect at the beginning of next month.

“Partnering with Arden, which has a proven track record of managing absolute return programs through many market cycles, enables us to continue participation in this attractive asset class, while better managing our overall capital commitments,” Robert Case, head of principal investment management at JPMorgan, said.

The deal will boost Arden’s assets under management to about $8 billion. The firm has seen its assets fall by about $2.5 billion over the past year.