JPMorgan Chase & Co, the second largest bank in US, is closing down its private equity and hedge fund operations. The bank is disbanding the investment banking unit that invests its money in hedge funds, leveraged buyouts and real estate transactions, reports Bloomberg. All team members, except the Asian team is being retained, which will be moved to other divisions of the bank.
The Asia private equity unit, along with the mezzanine investment group, will be combined with the emerging markets global special opportunities business, led by Chris Nicholas.
While JPMorgan is shutting private equity and hedge fund operations in other markets to cut back on risk, the Asia team is being expanded.
In March this year, The New York-based bank hired Vibhav Panandiker from Standard Chartered Private Equity to look after its PE investments in Southeast Asia and India. JP Morgan has also hired Cathy Zhang as managing director for its China operations.
These hires came after JP Morgan brought in Varun Bery and John Troy, co-founders of TVG Capital Partners Ltd, to head its Asia private equity efforts last year. The bank’s India head Kalpana Morparia has earlier said that it plans to make $800 million to one billion in private equity investments in India in next couple of years. JP Morgan also invests from its arm, One Equity Partners, which is focused primarily on doing control transactions.
JP Morgan’s private equity investments in India include L&T Infrastructure Development Projects Ltd., Apollo Hospitals & Enterprises, Cafe Coffee Day, etc. It was reported earlier that it is also planning a $750 million sector-focused fund targeting investments in shipping industry. The fund will be raised primarily from institutional investors in India and other Asian countries.
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