Realizing opportunity
Our Private Equity program is one of the largest in the industry with over $22 billion in private equity assets*, managed on behalf of more than 100 leading global institutions. The Private Equity Group is a bottom-up, opportunistic investor in all private equity investment types, stages of business development, industry sectors and geographical locations, and during all market environments. We have access to a broad range of investment opportunities not commonly available to the general marketplace. Our dedicated team of 53 professionals, located in New York, London and Hong Kong, consists of high quality, skilled professionals with more than 790 years of combined experience.**
Our strength lies in our ability to construct diversified, global portfolios of private equity investments using a flexible investment approach. We are able to opportunistically identify investment options and construct a diversified, global portfolio of high-quality private equity investments. We have consistently partnered with top quartile groups who seek to outperform the private equity market. In many cases, our relationships with these groups date back 10 and more years. In addition to these long-term relationships, we pride ourselves on accessing new opportunities, including targeted and first-time partnerships.
Corporate Finance Program (U.S. and Europe)
The strategy for our Corporate Finance program (U.S.and Europe) emphasizes high growth-oriented investments, typically generated through acquisition, fundamental business change, or top line growth. The underlying portfolio company investments may encompass equity capital for acquisition transactions and management buy-outs or buy-ins; industry consolidations and build-ups; refinancing and recapitalizations; and growth investments in venture-backed companies. The portfolio is widely diversified across industry sectors and stages of business development.
Venture Capital strategy
Our Venture Capital program has an early-stage investment strategy emphasizing companies at their seed or start-up phase. Early-stage investments allow the venture capitalist to obtain more meaningful ownership stakes, and to make the biggest impact in helping the company establish its business platform and management team. We partner with leading venture capitalists that have significant operational experience and are looking to finance high quality ideas, entrepreneurs, and companies. The majority of these companies focus on the technology, telecommunications, and life sciences sectors.
Distribution Management
The Private Equity Distribution Management ("PEDM") program was developed to manage distributions from private equity partnerships. It is a "sell only" product, with a process built to maximize the cash-to-cash returns on private equity investments in a short period of time. Effective management of these distributed securities in this final stage of the private equity cycle may significantly enhance actual returns realized from private equity investments.
As a private equity fund of funds manager, J.P. Morgan Asset Management has conducted extensive research to understand how distributions impact returns and how these distributions can be managed to help maximize cash-to-cash returns for our clients
The PEDM program incorporates the results of this analysis and our own experience and expertise in the public and private markets. PEDM was developed to provide other institutional investors with an effective approach to enhancing their private equity returns and overall plan performance, while minimizing trading costs and the administrative burdens associated with private equity distributions.
Our investment process utilizes industry-specific quantitative "checklists" of fundamental factors to separate the strong performers from the rest of the distributions. Each distribution received is evaluated immediately using a proprietary checklist developed for its industry. In this sell-biased process, only stocks scoring above a predetermined threshold are held.
Once a sell decision is made, our trading capabilities are leveraged in an effort to maximize returns. In the case of a decision to hold, stocks are carefully monitored for changes in the fundamental checklist factors, and sold if they fall below the threshold score. In addition, we believe that returning cash as quickly as possible is in the best interest of LP's and our average holding period is low.
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*As of June 30, 2012. ** As of September 30, 2012. The managers seek to achieve the stated objectives. There can be no guarantee the objectives will be met. Investing in private equity involves specific risk. They include but are limited to the following: Companies are typically in the developmental stage. Success is highly dependent on a few key individuals. Barriers to entry can be difficult. Securities are illiquid.
Private equity distributions may be illiquid, present significant risks, and may be sold or redeemed at more or less than the original amount invested. The manager seeks to achieve the stated objectives. There are no assurances that the stated investment objectives of the PEDM strategy will be met. The value of investments and the income from them may fluctuate and your investment is not guaranteed. Past performance is no guarantee of future results. Please note current performance may be higher or lower than the performance data shown.
This material does not constitute an offering of any security, product or service, including any fund named herein (the "Funds") for which an offer can be made only by each Fund's confidential offering memorandum (the "Offering Memorandum") or information memorandum. This material is for information purposes only, is confidential and may not be reproduced or distributed. This material is qualified in its entirety by the Offering Memorandum, which should be carefully read prior to any investment in a Fund. The purchase of shares of a Fund is suitable only for sophisticated investors for whom an investment in such Fund does not constitute a complete investment program and who fully understand and are willing to assume the risks involved in such Fund's investment program. An investment in the Funds involves a number of risks. For a description of the risk factors associated with an investment in a Fund, please refer to the section discussing risk factors in the Offering Memorandum. Shares of the Funds are not deposits, obligations of, or endorsed or guaranteed by, JPMorgan Chase Bank, NA or any other bank and are not insured by the FDIC, the Federal Reserve Board or any other government agency. J.P. Morgan Alternative Asset Management, Inc. is hereinafter referred to as JPMorgan Alternative Asset Management or JPMAAM. JPMAAM is registered as an Investment Adviser with the SEC.
FOR INSTITUTIONAL USE ONLY
This website is intended to report solely on the investment strategies and opportunities identified by J.P. Morgan Asset Management. Additional information is available upon request. Information herein is believed to be reliable but J.P. Morgan Asset Management does not warrant its completeness or accuracy. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The investments and strategies discussed herein may not be suitable for all investors; if you have any doubts you should consult your J.P. Morgan Asset Management Client Adviser, Broker or Portfolio Manager. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. You should consult your tax or legal adviser about the issues discussed herein.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.
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