JP Morgan Closes Private Equity Fund

November 27, 2002 ( - As expected, JP Morgan Partners, the buyout arm of JP Morgan Chase & Co, has closed the two-year fund-raising effort for its private equity fund, JP Morgan Global Investors LP, after raising $1.7 billion dollars.

Combined with the bank match of $3 for every $1 raised, JP Morgan Global Investors now has at least $6.8 billion of buying power, making this the  largest pool of private equity capital in a single fund, according to a Reuters report.

Additional contributions could raise total buying power to as much as $8 billion.

However, the $1.7 billion raised is only one-third of the total amount targeted for the Fund.   Regulatory filings in early 2001 had projected the partnership to raise as much as $5 billion for the Fund. Added to bank match estimates, the Fund was projected to have a total buying power of $13 billion.

“That was a different fund-raising environment in the first quarter of 2001,” said one bank official.