JP Morgan's private investment arm, One Equity Partners, will raise its next fund from an external group of limited partners, as it becomes independent from the New York-listed firm.

One Equity Partners, which currently manages approximately $4.5 billion of investments for
JP Morgan in direct private equity transactions, will continue to manage the existing group of portfolio companies for JP Morgan so as to “maximize value for the firm,” it said in a statement.

According to a Reuters report, a source close to the bank said that OEP is not “core” to JP Morgan’s business and the move is designed to simplify its operating structure.

In its first quarter earnings release, JP Morgan said that private equity posted a net loss of $182 million, compared with net income of $134 million in the prior year.

“The time is right for them to seek new capital to strengthen their global strategy, as they continue to manage our existing portfolio to maximize value to the firm,” said Matt Zames, chief operating officer at JP Morgan.

One Equity Partners was founded in 2001 and works with management teams globally to help businesses grow, with investments typically ranging from $50 million to $250 million per transaction.