JPMorgan & Chase Expands Private Equity Valuation Services

(Reuters) – PricingDirect and Alumni, two wholly-owned subsidiaries of the largest U.S. bank JPMorgan & Chase, have partnered to provide independent valuations of private equity securities. This move marks a significant expansion for the lender into the private equity sector beyond just providing capital.

Private equity has seen considerable growth in recent years, with more firms relying on private credit as a primary financing source. Consequently, the demand for accurate valuations of these transactions has increased, especially to comply with regulatory standards.

The partnership aims to help investors adhere to the Financial Accounting Standards Board's ASC 820 and meet the U.S. Securities and Exchange Commission's Rule 2a-5, which outlines regulations for the fair valuation of fund investments, as reported by the companies on Tuesday.

JPMorgan has allocated $10 billion of its capital for private credit, with potential for significant growth depending on demand, reflecting the bank's ambition to broaden its presence in the sector.

PricingDirect is known for providing fixed income data and analytics to investors, while Alumni, a startup acquired by JPMorgan last year, focuses on venture capital data and portfolio solutions.