In brief
- As the private equity market evolves, creative deal structures and a focus on overlooked segments like the mid-market are key to unlocking value and liquidity.
- Both limited partners (LPs) and general partners (GPs) stand to benefit from partners who can provide flexible solutions and support long-term growth.
- JPMorgan Private Markets Fund (JPMF) provides investors with exposure to an array of hard-to-access investment opportunities, including co-investments and secondaries focused on the less efficient, smaller end of the private equity market.
Secondaries: Providing liquidity in a distribution-deprived market
The global secondary market is experiencing record activity, with 1H25 volume reaching $103 billion—a 51% increase over 1H24. This surge is driven by LPs seeking liquidity as traditional exit channels remain subdued, as evidenced by a 10-year low in the ratio of distributions to beginning net asset value (NAV) in 2024.1 This trend is particularly evident among large and mega funds, whose liquidity profiles are more closely tied to the IPO market and broader exit activity.
Given the recent trends of declining distributions and extended holding periods for private investments, LPs are increasingly turning to the secondary market to accelerate liquidity—even as capital calls remain steady. At the same time, GPs are embracing continuation vehicles (CVs) to hold their best assets longer, seeking to maximize value while offering existing investors an option of liquidity. Nearly 75% of the 50 largest global private equity firms have utilized CVs, underscoring their growing role and widespread adoption in private markets.1
JPMF is designed to capitalize on current market trends and dislocations. The fund is primarily focused on LP-led secondaries, offering investors an attractive entry point to the private equity market via one of the industry’s fastest growing and most dynamic strategies.
Co-investments and staples: Creative capital solutions
The distribution drought has also resulted in a reduction in the amount of capital raised by private equity firms and an increase in the amount of time it takes to raise a new fund.2 In this challenging fundraising environment, investors with flexible capital—like the J.P. Morgan Asset Management Private Equity Group (PEG)—are well positioned to provide creative solutions such as co-investments or stapled transactions, which combine a co-investment or secondary with a primary commitment to a seasoned fund with existing holdings. These mutually beneficial arrangements offer GPs fresh capital, while investors gain enhanced visibility and targeted exposure to high-quality assets with preferential economics, since co-investments typically come without the additional layer of fees that often accompany fund commitments.
PEG’s disciplined and proactive approach, refined over 45 years3 of managing private equity investments on behalf of institutional and individual investors, enables the Group to navigate market cycles and capitalize on market dislocations. With a dedicated team of 70+ professionals4 and access to the broader resources of one of the world’s largest financial institutions, PEG mines its network of over 250 GP relationships to identify and structure innovative transactions with attractive risk/return characteristics—such as co-investments and staples—that meet the evolving needs of both LPs and GPs.
Small and middle-market focus: Attractive opportunity set in an era of capital consolidation
While large funds and mega deals dominate headlines and inflows, the overlooked small and mid-market private equity space presents a compelling relative value proposition. Defined as less than $3 billion in fund size and less than $1.5 billion in enterprise values, these deals often trade at attractive valuations with lower leverage levels and offer the ability to sell upstream to a broad universe of well-funded large buyout funds and strategic buyers. As capital continues to consolidate at the top end, nimble mid-market investors encounter less competition for companies that are often owned by founders or families. These businesses benefit from the expertise and value-added resources that skilled private equity managers employ to transform small companies into scaled, diversified, professionally managed enterprises that attract a broad array of potential buyers at exit. PEG’s focus on the small and middle market is a differentiated approach that enables investors to capitalize on the unique opportunities within this segment.
About the J.P. Morgan Private Equity Group
The PEG consists of a seasoned team of bottom-up private equity investors, with over 24 years of average senior tenure. JPMorgan Private Markets Fund (JPMF) is PEG’s evergreen fund focused on small and middle-market private equity investments with an emphasis on secondaries and co-investments in less cyclical, asset-light businesses. Technology, health care services, diversified financials and business services are among the largest sector exposures, contributing to a well-rounded portfolio comprising 93 transactions and over 2,000 underlying portfolio companies. Since its inception in July 2023, JPMF’s Class I shares have achieved a 70.2% cumulative return, corresponding to a 29.5% annualized return as of July 2025. This compares favorably to the MSCI World public equity index, which has generated cumulative and annualized returns of 42.1% and 18.7%, respectively, over this timeframe.5