Colonial First State (CFS) has partnered with JP Morgan Asset Management (JPMAM) to make its inaugural private equity allocation, continuing the firm’s expansion into unlisted asset classes.
The two firms have collaborated on a multiyear deployment program in order to capitalise on opportunities they see in the current market environment by investing in secondaries and co-investments, with a focus on small and mid-market buyout transactions.
These types of assets offer attractive risk and return characteristics, it said.
CFS chief investment officer Jonathan Armitage said the firm’s decision to work with JPMAM in this endeavour into private equity is a reflection of their expertise and performance in the asset class, as well as strong alignment with the CFS client-centric investment philosophy.
“We were particularly impressed by the depth of their private equity team, their commitment to delivering tailored solutions, and their ability to access and leverage the broader capabilities and relationships across the JP Morgan organisation.”
JPMAM’s Private Equity Group (PEG) manages US$35 billion ($54 billion) on behalf of a global client base, utilising a bottom-up, opportunistic investment approach that seeks to identify high conviction ideas across more than 250 general partner relationships.
Andrew Creber, JPMAM’s chief executive for Australia and New Zealand, said the firm is pleased to expand its partnership with CFS, which now spans across both public and private markets.
“Private equity plays a critical role in diversifying portfolios because it has the potential to enhance returns and reduce risk, but selecting the right partner with the experience and network to source transactions that exhibit attractive risk and return characteristics is critical.
“We are a big believer in long-term strategic partnerships and ultimately aim for our clients to view JPMAM as an extension of their own investment teams.”
Earlier this week, JPMAM announced it had formed a strategic wholesale alliance with Commonwealth Private, a subsidiary of Commonwealth Bank, to provide a multi-asset class wealth offering.
This would provide wholesale investors access to a range of investments and products, including domestic and offshore listed ETFs and equities, hybrid securities, thematic investing, direct equities, margin lending capabilities, and foreign exchange solutions.
