JPEL final close exceeds $50m target on $93m

Fund

London-listed specialist secondary investor J.P. Morgan Private Equity Limited (JPEL), formerly Bear Sterns Private Equity Limited, has held a final close on more than $93m, well surpassing its $50m fundraising target. The vehicle, which launched in 2005, was oversubscribed on its 2009 discounted offering.

In June, JPEL began marketing the issue of US equity shares at a discount to NAV to take advantage of the increased flow of secondary market investment opportunities, as well as to further enhance its balance sheet and increase cash reserves.

There was no set minimum subscription. GP contribution to the vehicle was $20m; management fees for JPEL are 1% of total assets with a performance fee of 7.5% after 8% preferred return. J.P. Morgan Cazenove acted as the sponsor for the fund, while Herbert Smith provided legal advice.

Investors

Investors in JPEL range from private clients to some of the UK's largest pension funds and insurance companies, as well as family offices and corporates based in Europe, Asia and the Middle East. About 30% of shareholders are based in the UK.

Investments

The vehicle will look to take advantage of opportunities in the secondaries space and will acquire secondary market portfolios of direct fund investments, invested partnership interests and partially drawn commitments. JPEL has a broad mandate, and will therefore look to invest $10m or less in any type of private equity asset class, ranging from real estate to mezzanine and special situations, buyouts and venture funds.

The fund is focused on distressed sellers and the smaller buyout market that deals in companies with lower levels of gearing. JPEL will aim to complete three to four deals per quarter and is open to secondary co-investments; it is currently looking at several deals in Asia, the US and Europe, expecting to close a deal in the next few weeks. JPEL is currently invested in 163 different funds, representing more than 1,500 underlying companies.

People

Gregory Getschow and Troy Duncan are the co-managers of the fund, supported by a team of eight investment professionals operating from offices in New York and London.

Name: J.P. Morgan Private Equity Limited

Closed on: $93.4m

Focus: Secondaries, Global

Contact: Troy Duncan (London based); Gregory Getschow (New York based)

Address: J.P. Morgan Asset Management, 245 Park Avenue, New York, NY 10167, US

Advisers: J.P. Morgan Cazenove (Placement agents); Herbert Smith (Legal).

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• Topics
• Buyout
• UK / Ireland