J.P. Morgan Chase, which is planning to break off its buyout unit, is in talks to sell about $4 billion of private equity stakes to an investor group, said three people familiar with the situation.
The potential buyers examining the holdings include C$192.8 billion (US$184 billion) Canada Pension Plan Investment Board, Toronto; Coller Capital, Lexington Partners, HarbourVest Partners, Goldman Sachs Group and Ardian, said two of the people. They asked not to be named because the talks are private.
The investor group would also provide capital for new deals to One Equity Partners, the private equity arm of J.P. Morgan that's in the process of becoming an independent firm. The business, which used to invest the bank's own money, will begin raising its next fund from an external group of investors, the bank said in June. J.P. Morgan joins banks including Credit Suisse Group and Citigroup in cutting back private equity holdings to focus on its main businesses.
Tasha Pelio, a spokeswoman for J.P. Morgan, declined to comment, as did officials for the investment firms.
Citigroup agreed in September to sell its emerging markets private equity unit to the Rohatyn Group to comply with new curbs on bank investments. Credit Suisse in February struck a deal to sell its stake in the first fund of Global Infrastructure Partners to Lexington Partners, according to a person with knowledge of the matter. The bank in August agreed to sell its private equity, infrastructure and real estate investment business to Grosvenor Capital Management.
Ardian, the private equity firm formerly known as AXA Private Equity, this year agreed to buy €250 million ($338 million) in buyout fund stakes from Mizuho Financial Group, two people familiar with the situation said in October.
