JP Morgan Fund Lands First Close –

JPMorgan Partners last month hit a first close on $825 million for its private equity vehicle, JPMorgan Partners Global 2001 Fund LP.

The fund has a target of approximately $9 billion with plans to raise at least $3 billion from third-party investors and $6 billion from JP Morgan Chase & Co. committed in $1.5 billion increments each year for the next four years.

If JPMorgan Partners succeeds in securing more than $6.1 billion, it will control the largest private equity vehicle in the world. But times are tough, and some LPs are wary of such a potentially large generalist fund, not to mention JPMorgan Partners’ recent investment portfolio write-downs.

To its credit, however, JPMorgan Partners remains committed to medium-cap companies, no matter how large its fund gets, leaving larger, multi-billion dollar deals to the other multi-billion dollar funds, said a source close to the firm.