According to three people familiar with the matter, the sale of One Equity Partners, a JP Morgan Chase’s private equity unit, has hit an impasse.
Two people close to potential buyers said the bank “pulled” the business off the market. Another source, active in the secondary market but not directly involved with the process, described the auction as stalled after the bank increased its asking price.
“The bid/ask spread has widened dramatically,” the secondary professional said. “It’s hard to imagine someone stretching to that level. There’s a lot of disappointed buyers.”
Sources said the bank could revive an auction of One Equity at any time. “The question is, do they try and come back six months from now, or never?” one source said.
A spokesperson for JP Morgan Chase declined to comment.
The bank announced last July it was spinning off One Equity, its last remaining private equity operation, because the unit was not core. JP Morgan Chase was not under regulatory pressure to sell: One Equity would not be affected by the Dodd-Frank financial reform law, which restricts the ability of bank holding companies to own and operate private equity groups, sister news service Reuters reported last year.
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, One Equity Partners, JP Morgan Chase, Dodd-Frank.