Middle-market buyout firm Arsenal Capital Partners is profiting from large-cap rival CCMP's abandonment of the financial services sector by nabbing one of the partners from the JP Morgan spin-off.

Arsenal hired Carty Y.K. Chock, a former CCMP Partner and veteran of JP Morgan's investment bank and private equity practice. The move signals that Arsenal, which invests in small firms, sees an opportunity in the financial sector that CCMP, which focused on large buyouts, does not. The markets have choked, or are expected to, on the financing for megabuyouts like those of lender Sallie Mae and financial technology company First Data.