PricingDirect and Aumni Partner to Deliver Independent Valuations for Private Equity Securities

Rhea-AI Summary

JPMorgan Chase subsidiaries PricingDirect and Aumni have announced a strategic partnership to provide independent valuations for private equity securities. The collaboration combines PricingDirect's evaluated pricing expertise with Aumni's private market data analytics to offer investors reliable valuations aligned with industry standards.

The partnership aims to help investors comply with ASC 820 and SEC Rule 2a-5 requirements for fair value fund investments. PricingDirect currently serves approximately 3,000 global clients and provides pricing for nearly 3MM fixed income instruments. The integration leverages Aumni's Market Insights product to deliver more precise valuations incorporating private market trends.

Positive

• Strategic partnership strengthens JPM's position in private equity valuations market
• Access to 3,000 global clients through PricingDirect's existing network
• Coverage of 3MM fixed income instruments enhances service offering
• Compliance support for ASC 820 and SEC Rule 2a-5 requirements

Negative

• None.

Insights

Financial Services Analyst

The strategic partnership between PricingDirect and Aumni marks a significant advancement in private equity valuations, addressing a important market need. With private market investments growing substantially, this collaboration combines PricingDirect's established pricing expertise with Aumni's data analytics capabilities to provide more accurate and standardized valuations. The integration is particularly timely given the increasing regulatory focus on fair value calculations and compliance with ASC 820 and SEC Rule 2a-5. For JPMorgan Chase, this represents a strategic move to strengthen its position in the Innovation Economy while potentially creating a new revenue stream in the growing private markets space. The partnership could significantly enhance JPM's competitive advantage in private market services, especially important as traditional banks seek to expand their alternative investment capabilities.

Market Research Analyst

This partnership addresses a significant gap in the private equity market, where accurate valuations have traditionally been challenging to obtain. The combination of PricingDirect's 3MM fixed income instruments coverage and Aumni's specialized private market data structuring creates a powerful solution for institutional investors. The timing is strategic, coinciding with increased regulatory scrutiny and growing institutional demand for private market investments. For JPM shareholders, this represents a smart vertical integration following the Aumni acquisition in 2023, potentially leading to increased market share in the private equity services sector and new recurring revenue opportunities from valuation services. The initiative aligns well with the broader industry trend of traditional financial institutions expanding their alternative investment capabilities.

NEW YORK & SAN FRANCISCO--(BUSINESS WIRE)-- PricingDirect, Inc. (“PricingDirect”) and Aumni, Inc. (“Aumni”), both wholly owned subsidiaries of JPMorgan Chase & Co., are pleased to announce a strategic partnership aimed at providing investors with independent valuations of private equity securities. This collaboration leverages the strengths of both entities to offer a comprehensive solution that enhances transparency and efficiency in the valuation process, helping investors navigate the complexities of private equity investments.

By combining PricingDirect's expertise in evaluated pricing and Aumni's private market expertise and advanced data analytics capabilities, the partnership offers investors the ability to receive valuations that are both reliable and aligned with industry standards.

“In the past few years, we’ve witnessed a significant increase in allocations to alternative assets. With over two decades of valuation experience in public markets, we are delighted to deliver solutions for private equity valuations to managers and allocators,” said Neil Hyman, CEO of PricingDirect. “With the powerful combination of PricingDirect’s valuation expertise and Aumni’s leading private market data structuring capabilities and insights, we can bring streamlined and tech-enabled capabilities to private markets participants,” Hyman added.

The partnership is designed to assist investors in complying with the Financial Accounting Standards Board's ASC 820 and in meeting the requirements of the U.S. Securities and Exchange Commission's Rule 2a-5, which governs the fair valuation of fund investments. A key component of this partnership is the integration of Aumni's market leading private investment structuring capabilities and Market Insights product. By utilizing this innovative tool, PricingDirect is able to deliver more informed and precise valuations, ensuring fair value calculations incorporate trends in private market valuations.

"We are excited to join forces with PricingDirect to deliver a solution that addresses the critical need for independent valuations in the venture capital and private equity space," said Alex Woodgate, Head of Corporate Development and Data Solutions at Aumni.

The partnership underscores J.P. Morgan's commitment to being the leading bank for the Innovation Economy. The firm is uniquely positioned to serve the global innovation ecosystem, from venture capital firms and their general partners to startups and high-growth companies. With dedicated teams focused on industries such as technology, fintech, life sciences, and climate tech, J.P. Morgan delivers deep industry expertise and comprehensive solutions across its Commercial & Investment Bank and Private Bank. By leveraging its robust network of investors and partners, J.P. Morgan supports companies from inception through IPO and beyond, reinforcing its role as a steadfast supporter of the Innovation Economy.

About PricingDirect, Inc.

PricingDirect is a wholly-owned subsidiary of JPMorganChase that provides evaluated pricing and analytics for nearly 3MM fixed income cash and derivative instruments across all global markets and more than a dozen snapshots every day. PricingDirect services approximately 3,000 clients globally across a broad spectrum of financial services related companies including asset managers, mutual fund complexes and custodians, banks, broker dealers, hedge funds, insurance companies, and many others. PricingDirect is the pricing agent for the J.P. Morgan family of fixed income indices. PricingDirect has offices in New York, London, Hong Kong and Singapore.

For more information, please visit: https://www.pricing-direct.com/

About Aumni, Inc.

Aumni, a J.P. Morgan company, is a leading provider of venture capital data and portfolio solutions. Venture firms, limited partners, fund administrators, and law firms use Aumni’s features to collect, structure, monitor, analyze, report on, and manage portfolio company documents and data – allowing clients to track KPI performance, summarize LPA terms, conduct scenario modeling, analyze market insights for benchmarking, and more. Aumni was founded in 2018 and acquired by J.P. Morgan in 2023. For more information, please visit: www.aumni.fund

About J.P. Morgan’s Commercial & Investment Bank

J.P. Morgan’s Commercial & Investment Bank is a global leader in banking, payments, markets and securities services. Start-ups, companies, governments and institutions entrust us with their business in more than 100 countries worldwide. With $35.8 trillion of assets under custody and $966 billion in deposits, the Commercial & Investment Bank provides strategic advice, raises capital, manages risk, offers payment solutions, safeguards assets and extends liquidity in global markets. Further information about J.P. Morgan is available at www.jpmorgan.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210000816/en/

Media:

Patrick Burton +44 20 7134 9041 patrick.o.burton@jpmorgan.com

Gurpreet Kaur +1 212 270 8894 gurpreet.x3.kaur@jpmorgan.com

For more information about Aumni, please email: contact@aumni.fund

For more information about PricingDirect, please email: PD_Sales@jpmorgan.com

Source: J.P. Morgan Chase & Co.

FAQ

What is the purpose of PricingDirect and Aumni's partnership under JPM?

The partnership aims to provide independent valuations for private equity securities by combining PricingDirect's pricing expertise with Aumni's data analytics capabilities.

How many clients does PricingDirect (JPM) currently serve globally?

PricingDirect serves approximately 3,000 clients globally across various financial services sectors.

Which regulatory requirements does the JPM partnership help investors comply with?

The partnership helps investors comply with the Financial Accounting Standards Board's ASC 820 and SEC Rule 2a-5 for fair valuation of fund investments.

How many fixed income instruments does PricingDirect (JPM) evaluate?

PricingDirect provides evaluated pricing and analytics for nearly 3 million fixed income cash and derivative instruments across global markets.