J.P. Morgan Enters U.S. Secondaries Market Fund With $1 billion Fund

The asset management arm of J.P. Morgan has raised a just over $1 billion toward a new fund targeting investments in the secondary market, adding to the recent flood of capital in the sector.

According to a regulatory filing, the fund, J P Morgan Secondary Private Equity Investors LLC, raised $781.2 million from 324 investments, while a parallel offshore fund, J.P. Morgan Secondary Private Equity Investors Offshore Special L.P., raised an additional $280.3 million from 198 investors. The filings indicate that “No further sales are expected to take place.”

The firm has entered the secondary market in a much smaller way in the UK, raising $50 million to invest in secondary assets through its listed $500 million fund, JP Morgan Private Equity Ltd.

The funds follow an influx of interest in the secondary market, despite a lack of activity. Goldman Sachs last year raised the largest ever dedicated secondary fund ever at $5.5 billion. That fund was underwater when it closed because it overpaid for assets. That pricing issue has kept many a traditional secondary investor on the sidelines this year. Data from yesterday shows those buyers may have missed their chance, as pricing in the third quarter of this year actually rose.  Meanwhile, there are still tons of private equity secondaries funds in the market. Here’s a list of 26 from earlier this year.

More of peHUB’s Coverage of the Secondary Market for Private Equity and Venture Capital:

What Is Stanford After With Its Asset Sale?

Who’s Active In Secondaries? Anyone BUT Secondary Firms

Hungry For Secondary Funds? Here’s Who Is In Market

Secondary-Palooza Still Waiting On The “Palooza”

PE Funds Maxing Out On Secondary Sales

Secondary Quote of the Day II: “We’ve been feeding investors two drugs”
Secondary Quote of the Day I: “Things are often popular for the wrong reasons.”
How Can Secondaries Bring Liquidity to Cash-Constrained Fully Invested Funds?
Secondary-Palooza Still Waiting On The “Palooza

5 Secondary Questions for Brett Gordon, HarbourVest Partners
New Goldman Secondary Fund Already Marked Down
Live-Blogging PEA Outlook: Secondary Panel
Want to Invest in a Big Secondary Fund? Here Are Your Options
Yet Another Way To Invest in Secondaries
Conversus Capital: “Like a REIT for PE Assets”
What are “Secondary-Lite” Buyers Buying?
“Secondary-Lite” The Only Secondary Getting Done

Harvard Opens Massive Secondary Sale
QMS Firm Estimates 20% of Funds Have Already Maxed Out On Secondary Sales for 2009
New Probitas Vehicle Aims to Bridge Secondary Pricing Gap
There Are More Secondary Buyers Then Sellers, Survey Says

A Word of Warning to the Rash of New Secondary Intermediaries
Mark to (Secondary) Market: Take Two
PE Funds Maxing Out On Secondary Sales
Published Secondary Prices Are “Stale;” Venture Worse-Off Than PE

Could Secondaries Wipe Out the Primary Fundraising Market?
There’s a New Secondary Intermediary (Or Two) in Town
Park Hill Is Starting A Secondaries Group, Too

Q&A With a Secondaries Buyer: “We’re Making Specific Bets on Companies”
It’s a Buyer’s Market: Q&A With a Secondaries Intermediary
Secondary Prices Drop