JP Morgan CFO to Run Private Equity

In another sign of the bank’s growing commitment to the private equity arena, J.P. Morgan & Co.’s chief financial officer, John Mayer, has resigned that post to run Morgan Capital Corp., the firm’s private equity arm.

Morgan Capital manages a portfolio of more than $1 billion and earlier this year began fund raising for the first of what will be a family of private equity funds (PEW Jan. 11, p. 1). The firm intends to commit a substantial portion of the equity to each of the funds, which will range in size from $500 million to $1 billion, while bringing outside LPs access to the funds.

The appointment of the former CFO to manage the private equity group represents the firm’s desire to have its former risk overseer manage what is an increasingly important area, said a source at the firm.

Brian Watson, the former head of Morgan Capital, will be returning to Australia to manage Morgan Capital’s Asia-Pacific activities. Peter Hancock, chairman of the firm’s risk management and capital committees, will add CFO to his duties.