JPMorgan Chase & Co. (JPM) Selling 50% Of Its Private Equity Business

After a long waiting period, JPMorgan Chase & Co. (NYSE:JPM) has finally decided to sell out 50% stake in its private equity business, One Equity Partners. JPM has current equity holdings of $4.5 billion and the bargain for this sale is struck at $2 billion. The two companies purchasing One Equity’s half of the current portfolio includes The Carlyle Group LP’s (NASDAQ:CG) AlpInvest Partners and Lexington Partners Inc.

J.P. Morgan (JPM)

JPMorgan Chas & Co. (NYSE:JPM) has been planning to sell One Equity Partners since June 2013 because of uneven investment returns and the sub-division could not justify its role in JPMorgan Chas & Co. (NYSE:JPM) current market position. After the transaction, One Equity Partner will start a new private equity investment firm with the name of OEP Capital Advisors LP. The company will manage both the remaining and as well as the sold portfolio of JPMorgan Chas & Co. (NYSE:JPM).

According to the Managing Partner of Lexington Partners, Brent Nicklas, “Lexington is pleased to partner with One Equity Partners to acquire a significant portion of JPMorgan Chase’s interests, and to support the future investment activities of the OEP team.” Similarly, Tjarko Hektor, MD of AlpInvest Partners, said, “We view this as a great opportunity to partner with one of the industry’s leading private equity firms.”

JPMorgan Chas & Co. (NYSE:JPM) is one of the largest US financial services firms and it has asset valued over $2.5 trillion. The company has a market cap of $211.81 billion, P/E ratio of 13.95 and dividend yield of 2.8%. The company has more than 245,192 full time employees. The four primary segments of JPMorgan Chas & Co. (NYSE:JPM) include Asset Management, Consumer & Community Banking, Commercial Banking, and Corporate & Investment Bank. The company has millions of customers and it has a strong foothold in corporate and government sector clients.

This article has been written by Prakash Pandey and Serkan Unal.
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