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JPMorgan raises $2.4bn for special sits

The manager’s second fund targeting the strategy has exceeded its target.

JPMorgan Asset Management held a final close on $2.4 billion for its second special situations fund, surpassing its $2 billion target.

The fund, Lynstone Special Situations Fund II, is investing in stressed, distressed and event-driven situations in European and North American private and public markets across the capital structure, the manager said in a news release. The predecessor fund, Lynstone Special Situations Fund I, raised $1.06 billion, exceeding its $750 million target, a spokesperson for JPMorgan Asset Management said. That fund closed in October 2019.

Lynstone Fund II, which held its first close in June 2021, looks for situations where underlying assets are potentially discounted because of illiquidity or market disruption, and where an event or catalyst has the strong potential to drive a positive total return.

A broad set of institutional investors including pension funds, insurance companies, foundations, endowments and wealth managers across the Americas, Europe, Australia and Asia participated in the fundraise.

The global special situations team, which operates as part of JPMorgan Global Alternatives, is led by co-chief investment officers Leander Christofides and Brad Demong. The team has $3.5 billion of assets under management.

“We believe that GSS is well positioned to invest dynamically in market-driven and bespoke private market investments globally to drive strong returns for our investors,” Demong said in the statement.

His counterpart said that both new and existing investors participated in the fundraise, and he expressed support for the team’s investment approach and its ability “to deliver performance through the cycle”.

JPMorgan Global Alternatives is the alternative investing arm of JPMorgan Asset Management, a platform with $218 billion under management as of 31 March 2022.