JPMAM partners with iCapital to launch private markets fund

J.P. Morgan Asset Management (JPMAM) has launched a new small to mid-market private equities fund for wholesale investors in collaboration with global fintech platform, iCapital Advisors.

The fund will be managed by iCapital and leverage the underlying strategy from JPMAM’s Private Equity Group (PEG), the firm’s flagship private equities investment manager bringing 40 years of experience and an existing USD$30 billion in global assets under management (AUM).

“Private equity plays an important role within a wholesale investor’s portfolio. In general, our analysis shows private equity has outperformed public markets across different market conditions. Private equity also provides diversification from your traditional core investments and can help to lower a portfolio’s volatility,” Ashmi Mehrotra, Co-Head of PEG, said.

“However, active management is key when it comes to private equity as this asset class can sometimes deliver a wide dispersion of returns. “When looking at the range of opportunities in the small to mid-market space, we deploy a strict set of criteria to determine if an investment is viable. For example, what is the opportunity set? Is there operational value-add? Are there attractive entry multiples? Is there a reliance on leverage? And importantly, what are the exit opportunities?”

Mark Calile, Head of Wholesale, Australia and New Zealand at JPMAM, said the fund would democratise private market opportunities for wholesale investors that are traditionally guarded for institutional investors.

“We developed this solution following feedback from the market that wholesale investors were looking for access to private equity but at a lower investment minimum, no capital calls/commitments and regular liquidity. This wholesale solution meets these features at a competitive fee.”

The latest market outlook from JPMAM’s PEG also confirmed the small to mid-market is an “attractive” opportunity for investors, offering higher return potential when compared to the large and mega-markets.

“Providing access to private equity and alternative solutions to wholesale investors has been a key strategic initiative for us,” Andrew Creber, Australia and New Zealand CEO, JPMAM, said.

“As a global asset manager we have the depth and breadth of investment expertise and capability to provide wholesale investors with access to these more niche parts of the market. As appetite grows for more innovative and diverse investment opportunities, J.P. Morgan Asset Management stands in good stead to bring these solutions to Australia, leveraging the investment expertise of PEG, one of the longest-standing PE firms in the industry.”