JP Morgan Chase has warned that earnings from its private equity arm, so often the bonus to a good year at the bank, would this year drag down group revenues in already choppy markets.
JPMorgan Partners, the private equity division of the US investment bank, which runs some of the most transparent reporting of all the captive funds, has consistently written down its portfolio over the last few quarters. A source close to the bank said: "A year-and-a-half ago they decided to hold open the kimono, so to speak, and let everyone see what was going on in their private equity portfolio. I don't know whether they regret that now."
