QIA, J.P. Morgan Asset Management Plan $20B Partnership

Qatar Investment Authority and J.P. Morgan Asset Management have signed a memorandum of understanding outlining a $20 billion investment partnership across public equities and private credit.

The planned partnership comprises a $15 billion public equities mandate and a $5 billion private credit initiative. Under the equity mandate, J.P. Morgan Asset Management would construct and manage customized global portfolios aligned with QIA’s long-term investment objectives.

The private credit initiative would provide senior financing to established U.S. middle-market companies. The strategy will invest across industries, with an emphasis on industrial, services, healthcare and technology businesses.

The structure gives QIA, Qatar’s sovereign wealth fund, exposure to liquid global equities and privately originated corporate credit through one asset-management relationship.

“Through ongoing investment dialogue, joint programs and the direct exchange of ideas, this collaboration will play an important role in unlocking new opportunities for both firms to generate long-term value,” QIA CEO Mohammed Saif Al-Sowaidi said.

Mary Callahan Erdoes, CEO of J.P. Morgan Asset and Wealth Management, said the firm would use its public and private market capabilities to develop customized investment solutions for QIA.

The agreement is the latest large strategic relationship announced by QIA. In January, the sovereign wealth fund said it planned to commit a combined $25 billion to Goldman Sachs Asset Management funds and co-investment opportunities.

Pictured: Mohammed Saif Al-Sowaidi, CEO of QIA and Mary Callahan Erdoes, CEO of J.P. Morgan Asset & Wealth Management.