JPMorgan launches PE fund services in UK

JPMorgan has launched a UK-based private equity fund services business offering fund and portfolio administration to European and Middle Eastern private equity firms and limited partners.

JPMorgan Private Equity Fund Services will offer middle and back office outsourcing services such as investor tracking, fund accounting, tax support services and investor reporting. For limited partners, it will provide portfolio administration services to clients seeking support in the management and reporting of alternative investment portfolios.

“The trend for outsourcing is growing in Europe and we had clients that wanted us there. We already have several mandates and the announcement itself has generated more interest,” said Robert Caporale, chief executive at JPMorgan Private Equity Fund Services, which already has US$100bn under management in the US, having launched operations there in 2005. US clients include HM Capital Partners; One Equity, JPMorgan Chase’s captive buyout arm; and CCMP Capital Advisors, which spun out of JPMorgan in 2005.

“Private equity firms need to become more institutionalised, as funds get larger and pension funds increase their investments,” added Caporale. “They require more transparency and better reporting standards, which has put a strain on the back office and driven outsourcing. So, if they can come to JPMorgan to handle their back office and not worry about it, it makes a lot of sense.”