JPMorgan is seeking to offload risk tied to more than $4bn in loans to private equity funds as the biggest US bank looks to cut its exposure to an industry grappling with a prolonged slowdown.
The New York-based lender is in talks with investors over a transaction that would allow it to transfer risk tied to so-called net asset value loans backed by private equity fund assets.
JPMorgan’s discussions about reducing its exposure to NAV loans come as private equity companies have struggled to exit their investments. Investors and analysts also fear that portfolio companies, particularly in the software sector, will be disrupted by AI.
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