• Monday, December 04, 2023
businessday logo


JPMorgan’s private equity unit to become independent


JPMorgan Chase & Co said on Friday its private equity unit, One Equity Partners, will become independent, as the largest U.S. bank increases its focus on client businesses.

One Equity Partners, which manages $4.5 billion of investments, will raise its next investment fund externally rather than from JPMorgan, becoming similar to stand-alone private equity firms that pool funds from a variety of investors.

One Equity Partners is not core to JPMorgan’s business and is being separated as the bank looks to simplify its operating structure, according to a source close to the bank. Private equity is a small part of JPMorgan’s business. In the first quarter, the unit posted a loss of $182 million, compared with a profit of $134 million a year earlier.

Founded in 2001, One Equity has invested about $9 billion to buy more than 60 companies in sectors including chemicals, healthcare, technology, travel and manufacturing. It typically invests between $50 million and $500 million in a single deal.

One Equity Partners will continue to manage existing portfolio companies for the bank, including the travel technology firm Travelport and the healthcare firms M*Modal and Wright Medical Group.