JPMorgan sets up $750m Asia fund

The US bank has recruited the team of Asia Pacific-focused firm TVG Capital Partners, becoming the latest bank to increase its direct investment role in the region.

JPMorgan Asia Pacific has set up a $750 million (€508.6 million) Asia Pacific mid-market fund after recruiting the entire team of TVG Capital Partners. This firm’s funds are currently in wind-down mode, but the business has not been bought by JPMorgan.

TVG’s co-founders Varun Bery and John Troy will join JPMorgan as managing directors taking a mid-market investment mandate across sectors including consumer, retail and natural resources, with a focus on non-control investments. The fund will not invest in real estate or in financial services so as not to conflict with the investment bank or the firm’s private equity real estate team.

The team will be the Asian arm of JPMorgan's Private Equity Principal Investments business, which is headed by Bob Case in New York.

The fund will be focussed on India, China and Japan although it will be able to invest across the Asia Pacific region.

JPMorgan also invests in private equity via One Equity Partners.

JPMorgan’s banking rivals are also stepping up their involvement in private equity direct investment. US bank Citi bought Morgan Stanley spin-out Metalmark Capital last year. Morgan Stanley, meanwhile, is raising a $6 billion fund for a new private equity arm set up three years after the spin-out by Metalmark.