LabMorgan, JPMorgan Chase's high-tech investment vehicle, has been folded into its private equity arm JPMorgan Partners in all but name, as the second executive to leave LabMorgan in two months has moved to JPMorgan's consumer banking unit.

Dennis O'Leary, executive vice president, is leaving LabMorgan, which was set up at the peak of the technology boom in the first quarter of 2000. Now the peak has turned to trough and market sentiment has set against all but the most compelling technology story, LabMorgan has had to cut staff from a headcount that had run as high as 300 a year after its formation.