Oct 20 (Reuters) - JPMorgan Chase & Co is close to finalizing a deal to sell the majority of Highbridge Capital Management LLC’s private equity business, the Wall Street Journal reported, citing people familiar with the matter.
The bank is working on a deal to give up control of the $22 billion private equity business to Highbridge Chief Executive Scott Kapnick and others in his management team, the newspaper said on Tuesday. (on.wsj.com/1GR85KF)
JPMorgan is expected to retain a minority share of the PE business and all of Highbridge’s $6 billion hedge fund business, the Journal said.
A major factor behind the decision was the private equity business team’s desire to be free of the constraints of a large bank, the WSJ reported, adding that the deal could close by the end of this year.
JPMorgan declined to comment.
The bank had bought a majority stake in Highbridge in 2004 for $1.3 billion and in 2009 completed its takeover of the hedge fund. (reut.rs/1GR83lY) (Reporting by Ramkumar Iyer in Bengaluru; Editing by Savio D'Souza)