Corsair Capital to spin out of JP Morgan

Corsair Capital, a financial services private equity specialist, is to be spun out of JP Morgan and is planning on opening a London office.

Corsair Capital, a private equity affiliate of JP Morgan since 1993, is in the process of spinning out of investment bank JP Morgan. Since 1993, the firm has invested approximately $1 billion (€828 million) in the financial services sector.

According to a spokesperson for Corsair, the move to spin out is currently in progress and going through administrative and legal proceedings, but will “happen in the short term”.

The New York-based team is led by chairman Nicholas Paumgarten, who joined JP Morgan in 1992 to manage Corsair and has participated in all of its investments. Other senior executives include D. T. Ignacio Jayanti, president, and T. Kimball Brooker, Jr., chief investment officer.

Arnold: joining Corsair in London

The firm has also announced the appointment of Luqman Arnold as partner. Arnold was most recently CEO of the UK’s Abbey National until he oversaw the completion of the bank’s sale to Santander Central Hispano. Prior to that, he was chairman of the group executive board of UBS in Zurich, group head of business development on the executive committee and board of Banque Paribas in Paris, and head of investment banking at Credit Suisse First Boston in London.

Corsair Capital has also unveiled plans to establish its first overseas office in London, and will be filing for regulatory approval, although no date has been set. According to a statement, Corsair has previously invested 65 percent of its capital outside of the US.

“[Luqman] brings on board years of international experience in developed and emerging markets during which he has been directly involved in almost every sector of financial services,” Paumgarten, chairman of Corsair Capital, said in a statement. “His experience as a senior executive of several major financial institutions will allow Corsair to provide enhanced value to the operations of our portfolio companies.”

In addition to Corsair’s separation from JP Morgan, the bank also announced in March of this year that it will spin out JP Morgan Partners, its private equity arm, as an independent unit once it has finished investing its current $6.5 billion Global Fund.