JPMorgan unit restructures

The bank will reportedly shutter the hedge fund and private equity business of its principle investment management group, except for an Asia-focused private equity team.

JPMorgan’s principle investment management group, which makes private equity, mezzanine, real estate, hedge fund equity and tax-oriented investments, is restructuring, according to a spokesman from the bank.

“The bank intends for greater integration between the group’s investment activities and direct clients’ businesses to achieve greater efficiencies,” the spokesman said, declining to comment further.

With the exception of Private Capital Asia, an Asia-focused private equity division within the group, JPMorgan will shutter the group’s hedge fund and private equity business. One Equity Partners, a separate private equity unit of the bank is unaffected, unnamed sources told Bloomberg.

Private Capital Asia and a division which makes mezzanine investments will be merged with JPMorgan’s emerging markets global special opportunities business, the Bloomberg report said.

JPMorgan is reportedly combining the group’s real estate team into the bank’s securitised product business while the tax-oriented and structured investing divisions of the group will join a securitised products unit of the bank.

Bob Case, the global head of the principle investment management group, may take on another position within the bank while most of the group’s 150 employees will be relocated to other divisions, sources told Bloomberg. The group has investment professionals in New York, Chicago, Los Angeles, London, Hong Kong, Sydney and Mumbai, according to its website.

Private Capital Asia is headed by Varun Bery, the co-founder of private equity firm TVG Capital Partners. In March, the bank hired Vibhav Panandiker and Cathy Zhang as managing directors for Private Capital Asia, to be based in Singapore and Hong Kong respectively. Panandiker and Zhang both report to Bery. 

Private Capital Asia makes mid-market growth investments primarily in Australia, China, India, Japan and Korea. It typically invests for minority stakes at an average deal size of $50 million. While the team invests across all sectors, it focuses on the telecommunications, media, resources, informational technology, healthcare, consumer and retail industries sectors. Its previous investments include Tianrui Group Cement Company, a Chinese cement producer.