A group led by Lexington Partners has agreed to acquire JPMorgan Chase’s interests in roughly 50% of the portfolio companies held by One Equity Partners, JPMorgan’s PE arm. The deal is reported at around $2 billion and includes investment from AlpInvest Partners, which is owned by The Carlyle Group. The sale is expected to close by year’s end, and once complete, OEP professionals will form an independent investment advisory firm, OEP Capital Advisors, to manage the portfolio sold and investments retained by JPMorgan.
The news provides closure to a long-standing issue dating to last year, when it was first believed that JPMorgan Chase was looking to sell OEP. In July, the PE unit of America’s largest bank by assets reported just $36 million in 2Q revenue and $7 million in 2Q profit, way down from $410 million and $212 million in 2013's same period. According to The Wall Street Journal, the buyers will help raise cash for OEP’s next buyout fund but JPMorgan doesn’t plan to invest in the future vehicles.