NEW YORK CITY (dpa-AFX) - Financial services giant JPMorgan Chase & Co. (JPM) is nearing a deal to sell half its stake in the portfolio of its private equity business One Equity Partners, the Wall Street Journal reported Tuesday, citing people familiar with the matter. The sale of the buyout arm is part of JPMorgan's efforts to focus more on its core businesses.
According to the WSJ report, JPMorgan is in advanced talks with investment firms Lexington Partners L.P. and Carlyle Group L.P.'s (CG) AlpInvest Partners unit to sell them half of the nearly $4.5 billion in investments that One Equity manages for the bank.
The buyers of the One Equity may commit cash to One Equity's next buyout fund, while JPMorgan does not plan to invest in any future One Equity funds, the WSJ reported.
JPMorgan had said in June 2013 that the partners of One Equity Partners or OEP will begin to raise their next fund from an external group of limited partners and become independent from the bank.
Since inception in 2001, OEP has managed about $14 billion in total investments and committed capital for JPMorgan. Since 2001, the unit has invested in over sixty-five companies in a variety of industries, including chemicals, healthcare, technology, travel and manufacturing.
OEP was founded in 2001 by Dick Cashin, a former Olympic rower who is now the unit's managing partner. JPMorgan inherited One Equity as part of its 2004 acquisition of Bank One.
JPM closed Tuesday's trading at $58.67, up $0.43 or 0.74 percent on a volume of 10.38 million shares.
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