JPMorgan Chase's acquisition of the startup LayerOne is expected to enhance its hedge fund services business.

JPMorgan Chase (JPM.US) has acquired the investment management platform LayerOne Financial, which was separated from Fortress Investment Group, to enhance the investment bank's hedge fund services. JPMorgan Chase's wholly-owned subsidiary Neovest stated in a press release that the acquisition was completed by JPMorgan. In the statement, both companies mentioned that through this transaction, Neovest's clients will be able to monitor investment portfolios, conduct risk assessments, send orders to brokers, and perform compliance checks all on the same platform. Neovest CEO Jimmi Shah stated in the release, "Following this acquisition, Neovest will be able to enable customers to manage their entire investment cycle through one software provider." Despite a decline in trading volumes and reduced capital market activity, banking services for hedge funds have continued to show growth in recent years, with banks fiercely competing for market share in this business. Within JPMorgan Chase, Neovest's platform already serves over 500 clients. It is understood that LayerOne was separated from Fortress Investment Group in 2017, and began operating independently. In this transaction, SenaHill Partners provided advisory services to the company, while Morgan, Lewis & Bockius LLP provided legal counsel. JPMorgan Chase and Gibson, Dunn & Crutcher LLP provided advisory services to Neovest.