Administration February 11, 2004

JP Morgan Expects to Shutter $8 Billion Private Equity Fund

November 26, 2002 (PLANSPONSOR.com) - J.P. Morgan Chase & Co. expects to close an $8-billion private equity fund - the world's biggest buyout pool - as early as this week, after two years of fund raising, Reuters reported.

Reported by

Fred Schneyer

J.P. Morgan originally hoped to raise as much as $13 billion.

J.P. Morgan expects to focus the new fund on investments in traditional economy sectors like manufacturing, financial businesses and retail.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter. 

The investment bank expects to kick in about $6 billion of its own capital, according to a person familiar with the situation as quoted by Reuters. The bank’s private equity arm, J.P. Morgan Partners, also sought outside investments for the first time, raising another $2 billion from pension funds, private investors and other institutions, Reuters said.

The fund, J.P. Morgan Partners Global Investment Partners LP, would be larger than the $6.4-billion pool raised by Blackstone Group earlier this year, the largest such buyout fund to date.

The new pool of capital follows several tumultuous years of investing as buy-out funds bet on telecom and technology companies. J.P. Morgan posted $299 million of private equity related losses in the third quarter, following a $1.2 billion loss in 2001, Reuters said.