Lexington Partners and AlpInvest Partners have entered into an agreement to acquire JPMorgan Chase’s interests in approximately 50% of the portfolio companies currently held by One Equity Partners (“OEP”), JPMorgan Chase’s private equity unit.
Once the sale is completed, which is expected by year end, the OEP professionals will form a new private equity investment advisory firm, OEP Capital Advisors, LP (OEPCA), and become independent from JPMorgan Chase. OEPCA will manage the portfolio being sold by JPMorgan Chase, as well as the investments being retained by JPMorgan Chase.
“Lexington is pleased to partner with One Equity Partners to acquire a significant portion of JPMorgan Chase’s interests, and to support the future investment activities of the OEP team,” said Brent Nicklas, Managing Partner of Lexington Partners.
Lexington Partners is an alternative investment manager primarily involved in providing liquidity to owners of private equity and other alternative investments and in making co-investments alongside private equity sponsors. Since 1990, Lexington has acquired over 2,200 secondary and co-investment interests through 500 transactions with a total value in excess of $30 billion, including $10 billion of syndications. Lexington also invests in private investment funds during their initial formation and has committed to more than 250 new funds in the US, Europe, and the Asia-Pacific region. In July 2014, Lexington Partners held a final close of Lexington Middle Market Investors III, LP with just over $1 billion in capital commitments exceeding its $750 million target. The firm employs more than 90 people and has offices in New York, Boston, Menlo Park, London, and Hong Kong (www.lexingtonpartners.com).
“We view this as a great opportunity to partner with one of the industry’s leading private equity firms,” said Tjarko Hektor, Managing Director of AlpInvest Partners.
AlpInvest Partners, the private equity fund of funds arm of The Carlyle Group, is one of the largest private equity investors in the world, with approximately $48 billion of assets under management as of June 30, 2013. AlpInvest’s activities cover a range of private equity investing, including primary fund commitments, secondary purchases and co-Investments. The firm’s investments span the spectrum of private equity: buyouts, venture capital, growth capital, mezzanine, and distressed. In October 2013, AlpInvest held a final close of AlpInvest Secondaries Fund V at its hard cap of $750 million and above its original $500 million target. The firm is based in Amsterdam with additional offices in New York, Hong Kong, and London (www.alpinvest.com).
“We look forward to delivering great long-term value to these two leading alternative investment management firms,” said Richard Cashin, Chairman and Chief Executive Officer of One Equity Partners. “We also thank JPMorgan Chase for their partnership and support of many years, enabling us to build the business we have today.”
One Equity Partners is the private investment arm of JPMorgan Chase and manages approximately $14 billion in commitments and investments solely for the bank. Founded in 2001, One Equity Partners has 39 investment professionals in New York, Chicago, Frankfurt, Vienna, Hong Kong, and Sao Paulo (www.oneequity.com).
2014 PEPD • Private Equity’s Leading News Magazine • 8-12-14
