Investment firms Lexington Partners and AlpInvest Partners said they would buy about 50 percent of the portfolio companies held by JPMorgan Chase & Co's (JPM.N) private equity business, One Equity Partners.
Terms of the transaction, which is expected to close by the end of this year, were not disclosed.
One Equity executives will form a new private equity investment advisory firm, OEP Capital Advisors LP, and become independent from JPMorgan Chase once the sale is completed, according to a statement issued by the companies.
The advisory firm will manage the portfolio being sold as well as the investments being retained by JPMorgan Chase.
The deal is not expected to have a material impact on JPMorgan Chase's earnings.
Reuters had earlier reported that One Equity Partners had investments valued at more than $4 billion.
The bank announced in July 2013 it was planning to spin off One Equity, its last remaining private equity operation, as the unit was not core to its business.
(Reporting By Neha Dimri in Bangalore; Editing by Saumyadeb Chakrabarty)