JP Morgan Plans New-Media Fund

J.P. Morgan Chase & Co., riding the wave of investor interest in fast-growing, closely held technology firms such as Facebook and Twitter, plans to start a fund that would invest in Internet and digital-media companies.

The planned investment fund, run from the New York company's asset-management unit, is expected to raise between $500 million and $750 million. It isn't clear whether J.P. Morgan plans to invest directly in target companies or buy and sell shares on behalf of clients. But the investment fund will target "late-stage" private companies, or those with an up-and-running business model, steady revenue and cash flow. The planned investment fund, being pitched mostly to wealthy investors, is the latest sign of recognition by Wall Street deal makers that social-media companies could be big money makers. Such companies, including shopping website Groupon Inc., straddle the technology, consumer and media sectors.