JP Morgan Gavea Investimentos
JPMorgan in Talks to Buy Brazilian Gavea Investimentos
JPMorgan Chase is considering buying the Brazilian hedge fund manager Gávea Investimentos. This would be a big purchase for the investment bank and, as with the other story in this newsletter, another example of banks increasing their investments in hedge funds despite the possibility that this could be outlawed or limited
under the Volcker rule. The purchase of Gávea Investimentos is reportedly contingent on the financial regulation being fairly lenient on investment banks holdings in hedge funds.
The latest firm to thumb its nose at the Volcker rule—which would ban banks from owning, investing in or sponsoring hedge funds or private equity funds—is the bank with the most to lose, JPMorgan Chase. The New York-based firm is in talks with Brazilian hedge fund manager Gávea Investimentos.
According to the Financial Times, those discussions are at an advanced stage, but no deal has yet been reached. Among the things that could yet sink an agreement is the Volcker rule: JPMorgan is reportedly waiting to find out just how stringent the new financial regulations will be before agreeing to buy Gávea.
Still, the talks represent a more serious potential deal than that reportedly discussed by Highbridge Capital Management, which is owned by JPMorgan, and Gávea earlier this year. Under that sketchy proposal, Highbridge would take an undisclosed stake in the firm, but Gávea would retain its own management team and “autonomy.” Source
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