The private equity vehicle credited post-closing value creation for most of its gains and paid shareholders their first distributions during the year.

June 25, 2026

JPMorgan Private Markets Fund closed its latest fiscal year with roughly $1.6 billion in net assets and a double-digit return, according to the annual shareholder report covering the year that ended March 31, 2026.

The fund, advised by J.P. Morgan Investment Management and managed by the firm’s Private Equity Group, posted a net return of 11.9 percent on its Class I shares for the year. Since it began operating in July 2023, the fund has returned 82.3 percent on a cumulative basis, or about 24.4 percent annualized. Total investments stood at roughly $1.76 billion, with net assets of about $1.64 billion after liabilities.

The document is an amended version of the annual report first submitted in June 2026. The fund said the changes correct typographical errors and add information about its officers and trustees, and that none of the audited financial statements or related notes were altered.

How the portfolio is built

The fund invests primarily in private equity through three approaches: secondary purchases of existing fund stakes, co-investments alongside other sponsors, and primary commitments to newly formed funds. It also holds some private debt and yield-oriented positions to help manage liquidity. At period end, the portfolio held 116 positions and exposure to more than 2,000 underlying companies.

Buyout deals dominated the private equity allocation at 98 percent. The breakdown within that book was:

• Secondaries: 54 percent
• Co-investments: 40 percent
• Primary commitments: 6 percent

By geography, North America represented 79 percent of private equity value, Europe made up 18 percent, and the rest of the world covered the remainder.

What drove the gains

The managers attributed most of the year’s gains to value created after deals closed rather than to favorable purchase prices. About 87 percent of the fund’s private equity gains came from post-closing value creation, with the remaining 13 percent tied to discounts at entry. The team pointed to co-investments and secondary positions held alongside small and mid-market managers as the main drivers.

Two co-investments stood out. One was a technology-enabled marketplace that links health systems with physicians. The other was a fast-growing maker of premium haircare products. The fund made both alongside primary commitments to managers raising new funds, an arrangement the team said reflects the sourcing reach of its platform.

A market shaped by slower exits

The Private Equity Group described an investing backdrop defined by a slowdown in deal exits. Public markets advanced in 2025 but cooled in early 2026, with most major indexes falling in the first quarter. That softer environment has made it harder for sponsors to sell holdings, which has in turn slowed cash returns to fund investors. The group said the resulting demand for liquidity has widened the pool of secondary opportunities, including direct purchases of investor stakes and deals led by general partners through continuation vehicles. The fundraising slowdown has also opened more room for co-investments and seasoned primary commitments.

The group said it concentrates on small and mid-market buyouts, a segment it views as large and durable. It cited more than 99,000 U.S. companies with annual revenue between $10 million and $300 million, a group that makes up roughly 95 percent of the country’s privately held businesses. The team argued that the lower end of the market tends to offer cheaper entry prices, less leverage, and more ways to build value through operations and add-on acquisitions, and that companies owned by smaller sponsors often become targets for larger buyout firms.

Returns and earnings by the numbers

Results varied modestly by share class. Class D returned 11.71 percent for the year, Class I returned 11.84 percent, and Class S returned 11.20 percent, based on net asset values used for financial reporting. The fund reported a net increase in net assets from operations of about $148.2 million, which included a net investment loss of roughly $10.9 million, net realized gains near $41.3 million, and an increase in unrealized appreciation of about $117.8 million.

The fund also paid its first distributions to shareholders during the year, totaling about $13.1 million. It paid none in the prior year. The distributions came out of long-term capital gains and were made in December 2025.

Fees, share classes and liquidity terms

The fund charges an advisory fee at an annual rate of 1.00 percent of net assets. The adviser is also entitled to an incentive fee equal to 10 percent of the fund’s net profits above the balance of a loss recovery account, a structure designed to require the fund to make up prior losses before the fee applies. For the year, the fund incurred about $16.5 million in incentive fees and roughly $14.0 million in advisory fees. The adviser reimbursed about $482,750 in affiliated fund fees and operates under an expense limitation agreement that caps certain costs.

Shares sell at net asset value on the first business day of each month. Class S and Class D shares carry distribution and servicing fees of 0.70 percent and 0.25 percent a year, while Class I shares carry none. Shares cannot be redeemed on demand. The fund instead offers limited liquidity through periodic repurchase offers made at the board’s discretion, and it may charge a 2 percent fee on shares repurchased within a year of purchase. The board has said it intends to consider quarterly repurchase offers of no more than 5 percent of net assets, though it is not obligated to conduct them.

New credit line and unfunded commitments

In July 2025 the fund put a revolving credit facility in place through a subsidiary, with State Street serving as administrative agent and lender. The facility allows borrowing up to $150 million and can expand to as much as $300 million if certain conditions are met. Borrowings carry interest tied to a reference rate or term SOFR plus a spread, and the facility matures in July 2028. The fund reported unfunded commitments of about $273.4 million at period end, and said it keeps enough cash, available borrowing, and liquid assets on hand to meet them.

PricewaterhouseCoopers audited the financial statements and issued an opinion that they fairly present the fund’s financial position. The firm noted it has served as auditor for funds in the JPMorgan complex since 1993.

Management and a post-period risk

The Private Equity Group is co-headed by Ashmi Mehrotra and Stephen Catherwood, who both joined the group in 2003. The group manages about $36 billion in private equity investments for institutional and private clients. The report also disclosed that each of the fund’s five named portfolio managers held between $100,001 and $500,000 of the fund’s shares.

After the period closed, the fund flagged rising geopolitical tension in the Middle East, including armed conflict involving Iran, as a source of market volatility, swings in energy prices, and possible strain on trade and supply chains. The adviser said it is monitoring the situation, had not recorded a material direct effect as of the reporting date, and could not estimate the ultimate impact.