JPMorgan acquires startup Layerone to boost hedge fund offerings

JPMORGAN Chase acquired LayerOne Financial, an investment management platform that was spun out from Fortress Investment Group, as it seeks to improve its offerings for hedge funds.

JPMorgan’s wholly-owned subsidiary Neovest did the deal, according to a statement. With the deal, Neovest’s clients will be able to monitor their portfolios, conduct risk assessments, send orders to their brokers and perform compliance checks all from one platform, the companies said in the statement.

“Following this acquisition, Neovest can enable clients to manage their full investment life cycle with one software provider,” Jimmi Shah, Neovest’s chief executive officer, said in the statement.

Banks have been clamouring to gain more market share in the business of offering services to hedge funds, which has held up in recent years even as dealmaking slumped and capital markets activity tapered off. Within JPMorgan, Neovest’s platform serves more than 500 clients.

LayerOne began independent operations in 2017 after it was spun off from Fortress Investment Group. For this transaction, the company was advised by SenaHill Partners, while Morgan, Lewis & Bockius provided legal counsel.

Neovest was advised by JPMorgan and Gibson, Dunn & Crutcher. BLOOMBERG