Ex-JPMorgan Affiliate Looks To SWFs As It Gears Up For Fund III

CCMP Capital Advisors LLC, the former affiliate of JPMorgan Chase & Co., expects to start raising its third buyout fund some time next year, Buyouts reported Tuesday, citing two sources familiar with the firm’s plans. Executives have been developing relationships with sovereign wealth funds as they continue to replace JPMorgan as a source of capital.

CCMP Capital has committed about 70 percent of the $3.4 billion predecessor fund, vintage 2006, suggesting that a couple more deals could trigger its next fundraise. The exact target for Fund III hasn’t been determined, but CCMP Capital will likely seek to raise a fund of a similar size.

JPMorgan, which committed just under a quarter of the predecessor fund, cannot commit to Fund III from its own balance sheet because of the Volcker Rule. (However, it can channel money through funds of funds and other third-party asset management businesses.) To help diversify its investor base, CCMP executives over the last few years have been building relationships with sovereign wealth funds in Asia, Australia, Europe and the Middle East.

The firm, which used Credit Suisse to raise the prior fund, is currently evaluating placement agents, our sources said. To read more about the firm, go here.