Qatar wealth fund, JP Morgan AM to launch $20 bln partnership
Qatar's sovereign wealth fund QIA and JP Morgan Asset Management plan to launch a $20 billion strategic partnership across public and private markets in both equities and credit. JP Morgan will manage customised global equity portfolios for QIA worth $15 billion, and a $5 billion private markets initiative will provide senior financing to middle-market firms in the US.
By Federico Maccioni DUBAI, Sept 21 (Reuters) — Qatar's sovereign wealth fund QIA and JP Morgan Asset Management plan to launch a $20 billion strategic partnership across public and private markets in both equities and credit, the two companies said in a statement on Monday. Under the preliminary agreement, JP Morgan will manage customised global equity portfolios for QIA worth $15 billion. Under a $5 billion private markets initiative, QIA and the US asset manager will provide senior financing to middle-market firms in the US.
The collaboration "will play an important role in unlocking new opportunities for both firms to generate long-term value,” said QIA CEO Mohammed Saif Al-Sowaidi. Qatar is facing financial strain due to the Iran war, which has made it impossible for it to reliably export liquefied natural gas - its primary income source. It has been seeking to diversify its economy by expanding its financial sector. The wealth fund has estimated assets under management of $580 billion and has long focused on building wealth overseas.
However, Qatar's prime minister on Sunday announced a new QIA division dedicated to developing domestic investments. In January, QIA signed a deal to expand its partnership with US investment bank Goldman Sachs, targeting $25 billion in investments. com, +971 527370852)