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KKR, Carlyle, GSO among potential bidders for JPMorgan Asia investment arm - report

  • Andrew Woodman
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KKR, The Carlyle Group and Blackstone's credit arm, GSO Capital Partners are said to be among potential buyers for JPMorgan Chase's Asia-based principal investment business, Global Special Opportunities Group (GSOG). The valuation is likely to be more than $1 billion.

According to the Financial Times, the investment bank has approached a number of private equity funds and credit focused hedge funds about the transaction which is part of an effort to streamline its operations and anticipate regulatory trends.

Set up in 2005, GSOG has more than $2 billion in assets and is involved in special situation lending in Asia as well as having a junior debt and mezzanine lending business in the US and Europe. While the operation does not directly fall foul of the new Volcker rule restricting proprietary investments, it is anticipated regulators may decide it is a risk-taking business.

GSOG was previously part of a bigger principal investing operation at JPMorgan but was pared back in 2009. The operation currently employs about 35 people in Hong Kong, Mumbai, London and New York and is run by Chris Nicholas. JPMorgan announced the simplification drive in October which includes the planned spinning out of One Equity Partners, its private equity arm.

 

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