JPMAM, QIA join forces in $28bn partnership

J.P. Morgan Asset Management (JPMAM) has signed a Memorandum of Understanding (MoU) with Qatar's sovereign wealth fund Qatar Investment Authority (QIA) to establish a $28 billion (US$20bn) partnership to support ongoing investments initiatives, as well as financing opportunities to certain sectors in the US.

The strategic partnership will include a $21 billion (US$15bn) public equities mandate for JPMAM to oversee QIA's global equity portfolios, and a $7 billion (US$5bn) private markets investment initiative distributing senior financing to established middle-market companies across the US, with a focus on the industrials, services, healthcare and technology sectors.

The relationship is designed as a mutually beneficial framework that brings together QIA's long-term institutional perspective and JPMAM's globally leading investment expertise, the parties said, highlighting the partnership will play an important role in positioning themselves to capitalise on global investment opportunities.

J.P. Mogan Asset and Wealth Management chief executive Mary Callahan Erdoes said the partnership will help deliver long-term value.

"It's a privilege to partner with QIA on this strategic initiative," Callahan Erdoes said.

"By leveraging J.P. Morgan's global investment capabilities across public and private markets, we'll support QIA's role as a leader in global institutional investing and help deliver customised, high-quality solutions."

QIA chief executive Mohammed Saif Al-Sowaidi added: "We are pleased to grow our partnership with J.P. Morgan Asset Management and gain access to one of the world's leading global equity and private credit platforms.

"Through ongoing investment dialogue, joint programs, and the direct exchange of ideas, this collaboration will play an important role in unlocking new opportunities for both firms to generate long-term value."

JPMAM recently launched a private equity strategy in Australia as it is in the middle of expanding investment opportunities for high-net-worth individuals, noting that the population have historically been under-allocated to the private sector.