Business news compiled by Sherin DevJPMorgan Chase is planning to start a new fund to invest in an array of Internet and new media companies such as Facebook and Twitter and digital-media companies, people familiar with the matter said.
JPMorgan Chase & Co is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
As per New York Times, ‘The proposed fund, which will be run by JPMorgan’s asset-management unit, is seeking to raise between $500 million and $750 million from wealthy investors to pour into privately held technology companies like Twitter and the social-buying site Groupon, these people said.’
‘The idea is to place bets on companies with established business models and steady revenues before they go public in widely anticipated stock sales.’
‘JPMorgan plans to buy and sell shares in these companies on behalf of clients, and will not directly invest the firm’s own money, one of these people said. But simply having a base of ready base of retail investors could give JPMorgan’s investment bank a competitive edge in winning business from the fledgling technology firms. Analysts have long viewed retail customers as a more stable source of capital, compared to money that moves in and out of stocks owned by hedge funds and other institutional investors. ‘
News of the JPMorgan fund comes ahead of the firm’s annual day-long investor conference on Tuesday, in which the bank will review its businesses and its plans for the year ahead.
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