Why private markets investments?
The number of companies going public has steadily declined, and many companies are staying private for longer. Those companies often experience healthy growth before they reach the public markets, going public at a more mature stage. Private markets offer access to a broader array of opportunities not found in the public market and the ability to invest in a company as — not after — it flourishes.
By only investing in public equities, investors are limiting their exposure to just 15% of the total equity universe. Private equity can expand the opportunity set for individual investors and offer higher return potential.
Why J.P. Morgan Private Market Strategy?
J.P. Morgan Private Markets Strategy is designed to provide investors with long-term capital appreciation through a portfolio of private market investments. Within private markets, we focus on small to midmarket buyouts, which offer the greatest potential for outperformance.
How can financial advisors invest?
For additional information, please contact your J.P. Morgan Asset Management representative, who will provide a link for you to register on the iCapital portal.
JPM partial ownership of iCapital
The sponsor, general partner, investment manager (or equivalent) of the JPMorgan Private Markets Fund and/or its affiliates (the “Sponsor”) owns a minority share of the outstanding equity securities of Institutional Capital Network, Inc. (“iCapital Parent”), a Delaware corporation, which wholly owns iCapital Network Canada Ltd. (the “Manager”). The Sponsor also holds a board of directors position and a board observer position with iCapital, Inc. The Manager may face conflicts of interest due to the existence of such ownership by Sponsor in its parent company, which conflicts may include, but are not limited to: (i) the creation of a potential incentive for iCapital Parent to favor the interests of the Sponsor over the interests of iCapital - PEG Evergreen Private Equity CAD Fund (the “Fund”) investors in the event such interests conflict, or; (ii) that iCapital Parent may be more favorably disposed toward establishing access funds to invest in funds managed or advised by Sponsor affiliated entities in lieu of funds managed or advised by other fund managers, and the existing relationship could increase the likelihood of such access fund arrangements to be agreed to or approved by Sponsor and iCapital Parent.
Insights and educational resources for client conversations
Plan and guide your client conversations with our resources on private equity investing.
1 S&P Capital IQ, as of 8/31/22. Analysis by J.P. Morgan Asset Management.
2 As of 3/31/2024 . Includes tenure and investing experience at both PEG and AT&T Investment Management Corporation (“ATTIMCO”). Portfolio Management team average tenure represents voting eligible members of PEG. There can be no assurance that any or all of these professionals will remain with PEG, or that the past performance or success of any such professional serves as an indicator of his or her future performance or success.
3 Source: Burgiss Private iQ; data as of 12/31/23. Based on private equity pooled industry performance aggregated by Burgiss. The performance is net of fees and expenses charged by managers. Performance represents Time Weighted Returns as calculated using the Modified Dietz methodology, which is a money-weighted return that takes into account the timing of cash flows by using a weighting factor. The weighting factor of a cash flow is calculated as the difference between the date of the cash flow and the date of the end of the periods divided by the number of days in the period. Pooled results are calculated using the composite transaction (cash flow and valuation) activity of the underlying funds after being converted to a common currency, known as the Pooled Results Currency, which is defined within the Parameters tab of the Analysis toolbox. No additional weighting is applied to the underlying funds; the amount of the full fund transactions and their associated full fund valuations are used in calculations. Underlying funds with larger fund sizes may naturally have larger transaction and valuation amounts, thus having a larger impact on the pooled results. For the avoidance of doubt, the performance shown is not reflective of PEG’s historical performance and does not reflect PEG’s investment strategy or the investment strategy of JPMF. Past performance is no guarantee of future results, and there can be no guarantee the performance shown will be achieved for investments that are not fully realized.
This website is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an investor's own situation.
Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.
Risks of Private Equity Strategies: The strategy will include exposure to private companies for which operating results in a specified period will be difficult to predict. Such investments involve a high degree of business and financial risk that can result in substantial losses. Private Equity Investment Risks. Private equity transactions may result in new enterprises that are subject to extreme volatility, require time for maturity and may require additional capital. In addition, they frequently rely on borrowing significant amounts of capital, which can increase profit potential but at the same time increase the risk of loss. Leveraged companies may be subject to restrictive financial and operating covenants. The leverage may impair the ability of these companies to finance their future operations and capital needs. Also, their flexibility to respond to changing business and economic conditions and to business opportunities may be limited. A leveraged company's income and net assets will tend to increase or decrease at a greater rate than if borrowed money was not used. Although these investments may offer the opportunity for significant gains, such buyout and growth investments involve a high degree of business and financial risk that can result in substantial losses, which risks generally are greater than the risks of investing in public companies that may not be as leveraged. Venture Capital Risks. Venture capital investments are in private companies that have limited operating history, are attempting to develop or commercialize unproven technologies or to implement novel business plans or are not otherwise developed sufficiently to be self-sustaining financially or to become public. Although these investments may offer the opportunity for significant gains, such investments involve a high degree of business and financial risk that can result in substantial losses, which risks generally are greater than the risks of investing in public or private companies that may be at a later stage of development.
Risks Associated with Private Company Investments: Private companies are generally not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls over financial reporting. As a result, the Adviser may not have timely or accurate information about the business, financial condition and results of operations of the private companies in which the Strategy invests. There is risk that the Strategy may invest on the basis of incomplete or inaccurate information, which may adversely affect the Strategy's investment performance. Private companies in which the Strategy may invest have limited financial resources, shorter operating histories, more asset concentration risk, narrower product lines and smaller market shares than larger businesses, which tend to render such private companies more vulnerable to competitors' actions and market conditions, as well as general economic downturns. These companies generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. These companies may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity. Typically, investments in private companies are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that the Strategy may not be able to resell some of its holdings for extended periods, which may be several years. There can be no assurance that the Strategy will be able to realize the value of private company investments in a timely manner.
JPMorgan Asset Management (Canada) Inc. is a registered Portfolio Manager and Exempt Market Dealer in all Canadian provinces and territories except the Yukon, and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec, and Newfoundland and Labrador.
INFORMATION FOR ALL SITE USERS: J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
Telephone calls and electronic communications may be monitored and/or recorded.
Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy.
If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
Copyright © 2024 JPMorgan Chase & Co., All rights reserved