JPMorgan Closes Deal for Private Equity Unit Spinoff
JPMorgan Chase just closed a deal to externalize Highbridge Capital Management's $22B private equity portfolio, while still keeping a minority stake and a $6B hedge fund portfolio. (Highbridge Principal Strategies, a Highbridge Capital subsidiary, partnered with Related Cos in 2013 to invest $800M in real estate debt.)
The deal follows the trend of big banks spinning off in-house private equity and hedge funds post-financial crisis. Proprietary investing businesses were the first to go.
Last year, JPMorgan sold off One Equity Partners, a division that invested large amounts of the bank's money.
Highbridge was acquired by JPMorgan back in 2004 when it was just a hedge fund. Following the deal, Highbridge execs, including chief executive Scott Kapnick, are expected to take ownership. [NYT]