JPMorgan Chase plans to launch a private equity fund that allows investors to redeem 7.5% of their investments every quarter.

JPMorgan Chase is preparing a new fund that invests in private credit, which will allow investors to redeem 7.5% of their shares quarterly and may offer a monthly redemption mechanism. Currently, the $1.8 trillion market is facing unprecedented liquidity stress. JPMorgan Chase publicly stated in its prospectus with private credit funds this week that it "currently expects" to provide quarterly redemption of 7.5% of shares. However, it is applying for exemption from the U.S. Securities and Exchange Commission in order to be able to redeem shares monthly, with a minimum of 2%. The fund is a interval fund. This move comes at a time when many large private credit management institutions are setting the quarterly redemption limit at 5%, locking up billions of dollars in outflows. Although interval funds are typically designed to allow for 5% to 25% quarterly redemptions, a commitment to allow for 7.5% redemptions is relatively rare, and the possibility of providing monthly liquidity is even rarer. A spokesperson for JPMorgan Chase declined to comment further on the disclosed content.