Why is JP Morgan Chase exiting the private equity business?

The deal would push Highbridge Capital Management’s $22 billion private equity portfolio outside JPMorgan, which would maintain a minority interest.  Top executives, including its chief executive, Scott Kapnick, are expected to take ownership.

Big banks have been under pressure to spin off their in-house private equity and hedge funds.

The first businesses to go were the operations that invested the banks’ own money — so-called proprietary investing — which was banned by the Dodd-Frank financial reform legislation known as the Volcker Rule.  

Has pressure from regulators and investors forced the big banks to simplify their businesses?

JPMorgan will apparently keep ownership of Highbridge’s $6 billion hedge fund portfolio.