JP Morgan Chase is launching a private equity unit in the Asia-Pacific region with its own capital of $750 million and client funds.
JPMorgan is expanding its Asian operations by absorbing a Hong Kong-based firm called TVG Capital Partners.
TVG is a private-equity investment firm with offices in Hong Kong; Bangalore, India; and Sydney, Australia. Its Web site says it manages more than $700 million in capital. TVG had focused on the technology, communications and media sectors.
Varun Bery and John Troy, co-founders of TVG Capital Partners, who will join JPMorgan as managing directors, will head the expansion. The 10-person team is also joining from TVG.
Varun Bery was a telecom banker for Credit Suisse Group and a consultant for McKinsey & Co. John Troy worked at the Asian Infrastructure Fund since its inception in 1994 and was previously at several global telecom firms.
The team from TVG will be the Asian arm of JP Morgan's Private Equity Principal Investments business, which is headed by Bob Case in New York.
JP Morgan will take stakes in consumer, retail, industrial, health care, technology and natural resources in businesses in Asia-Pacific region, where buyouts are notoriously difficult.
JPMorgan said it would allow its corporate and financial sponsor clients to put their own capital together with that of the bank to "co-invest" in the opportunities it finds.
JP Morgan's investments are minority stakes of between $75m and $100m.
JPMorgan has invested in Asian private equity through its units One Equity Partners and Principal Investment Management.
Lets look at Good things in this
The move demonstrates JP Morgan's ability to finance new investments at a time when many of its rivals are seeking sovereign wealth funds and other outside investors to help shore up their balance sheets following massive losses related to the turmoil in credit markets.
It also indicates JP Morgan's desire to catch up with investment banks such as Morgan Stanley and Goldman Sachs that were quicker to commit a significant portion of their own money to Asia.
JP Morgan decision to hire TVG staff to run the fund will get new operation up and running faster than if it built a team from scratch. TVG is bringing in 10 people, and J.P. Morgan expects to add to that quickly.
The new fund will evaluate investments across many sectors, but has avoided the real estate and financial institutions.
IMF has forecasted that Asia-Pacific economic growth may outpace the USA during the current year. The developing Asian economies have been driving corporate profits higher during the recent years, with the annual growth of about 8.6 percent. In the USA the index could only reach 1.5 percent.
Difficult listing conditions in Asia due credit squeeze, may open new doors for principal investments by banks because many in Asia's huge pool are privately held or family companies that will not go ahead with IPOs amid such stock market volatility.
Companies faced with difficult market conditions are looking increasingly to private-equity funds as stakeholders. Recent declines in stock prices and a fallback in markets have led to more favorable investment conditions for private equity funds.
JPMorgan is expanding its Asian operations by absorbing a Hong Kong-based firm called TVG Capital Partners.
TVG is a private-equity investment firm with offices in Hong Kong; Bangalore, India; and Sydney, Australia. Its Web site says it manages more than $700 million in capital. TVG had focused on the technology, communications and media sectors.
Varun Bery and John Troy, co-founders of TVG Capital Partners, who will join JPMorgan as managing directors, will head the expansion. The 10-person team is also joining from TVG.
Varun Bery was a telecom banker for Credit Suisse Group and a consultant for McKinsey & Co. John Troy worked at the Asian Infrastructure Fund since its inception in 1994 and was previously at several global telecom firms.
The team from TVG will be the Asian arm of JP Morgan's Private Equity Principal Investments business, which is headed by Bob Case in New York.
JP Morgan will take stakes in consumer, retail, industrial, health care, technology and natural resources in businesses in Asia-Pacific region, where buyouts are notoriously difficult.
JPMorgan said it would allow its corporate and financial sponsor clients to put their own capital together with that of the bank to "co-invest" in the opportunities it finds.
JP Morgan's investments are minority stakes of between $75m and $100m.
JPMorgan has invested in Asian private equity through its units One Equity Partners and Principal Investment Management.
Lets look at Good things in this
The move demonstrates JP Morgan's ability to finance new investments at a time when many of its rivals are seeking sovereign wealth funds and other outside investors to help shore up their balance sheets following massive losses related to the turmoil in credit markets.
It also indicates JP Morgan's desire to catch up with investment banks such as Morgan Stanley and Goldman Sachs that were quicker to commit a significant portion of their own money to Asia.
JP Morgan decision to hire TVG staff to run the fund will get new operation up and running faster than if it built a team from scratch. TVG is bringing in 10 people, and J.P. Morgan expects to add to that quickly.
The new fund will evaluate investments across many sectors, but has avoided the real estate and financial institutions.
IMF has forecasted that Asia-Pacific economic growth may outpace the USA during the current year. The developing Asian economies have been driving corporate profits higher during the recent years, with the annual growth of about 8.6 percent. In the USA the index could only reach 1.5 percent.
Difficult listing conditions in Asia due credit squeeze, may open new doors for principal investments by banks because many in Asia's huge pool are privately held or family companies that will not go ahead with IPOs amid such stock market volatility.
Companies faced with difficult market conditions are looking increasingly to private-equity funds as stakeholders. Recent declines in stock prices and a fallback in markets have led to more favorable investment conditions for private equity funds.
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