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Boston will be one of the five hubs for J.P. Morgan Private Bank’s new, private equity fund banking group, being launched with the help of bankers acquired from JPMorgan Chase’s purchase of First Republic Bank.
The fund banking group which is focused on the banking, lending, and investing needs of private equity, venture capital funds, and their C-suite executives across the country.
In addition to Boston, the unit will have hubs New York, Los Angeles, San Francisco, and Palo Alto. Former First Republic bankers all over the United States have joined the fund banking group, J.P. Morgan said, including a Boston-based vice president, Larissa Purcel.
The launch comes as other local banks are trying to capitalize on disruption caused by First Republic’s and Silicon Valley Bank’s failures this spring. Arlington-based Leader Bank launched a unit this fall focused on venture capital and tech startup clients and, before announcing its plans to merge with Eastern Bank, Cambridge Trust had signaled its intent to try and grow its own, older startup banking practice.
J.P. Morgan Private Bank said its fund banking group will also partner closely with JPMorgan Chase’s innovation economy baking unit.
“The Private Bank has been serving the private and venture fund spaces and their chief executive officers for more than 25 years,” J.P. Morgan Private Bank U.S. CEO David Frame said in a statement. “Historically, we’ve worked with some of the largest firms in the world, and the acquisition of First Republic earlier this year has enhanced our ability to reach a new segment of this industry.”
Jeff Kaveney was appointed as head of the fund banking group, responsible for defining and leading its strategy, the integration of 10,000 clients from First Republic Bank and growing the private bank in the fund banking and lending sector. Kaveney will report to Jason Gies, the managing director and head of the private bank’s financial sponsors group.
“For new entrants to mid-stage and mature funds, we are committed to being the leading financial partner to the firms and principals fueling innovation in the world of high-growth investments,” Kaveney said in a statement. “From providing liquidity to support their expansion and future investments, to helping fund employees navigate their complex personal balance sheet needs, we intend to deliver an integrated approach to their financial needs unmatched in this space with access to the full resources of the entire firm.”
