Qatar Investment Authority (QIA) and J.P. Morgan Asset Management (JPMAM) a memorandum of understanding (MoU) to set up a US$20 billion strategic partnership.

The QIA J.P. Morgan partnership covers public and private markets in both equities and credit. It starts with two initial areas of collaboration.

The larger part is a US$15 billion public equities mandate. JPMAM will manage tailored global equity portfolios for QIA, using its active equity capabilities, investment platform and research to support the fund’s long-term investment goals.

The partnership also includes a US$5 billion private markets initiative aimed at established middle-market companies in the US.

Through this initiative, QIA and JPMAM will provide senior financing to businesses across sectors.

This type of debt is repaid before other loans if a borrower cannot meet all its obligations. The focus will be on industrials, services, healthcare and technology.

The arrangement places a quarter of the total commitment in private credit, with the remaining three quarters in public equities.

“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,”

said Mohammed Saif Al-Sowaidi, Chief Executive Officer at QIA.

“By leveraging J.P. Morgan’s global investment capabilities across public and private markets,

we’ll support QIA’s role as a leader in global institutional investing and help deliver customized, high-quality solutions,”

said Mary Callahan Erdoes, CEO of J.P. Morgan Asset and Wealth Management.

Featured image: Edited by Fintech News UAE, based on image by Qatar Investment Authority (QIA) via its website.