J.P. Morgan Private Equity Ltd has agreed to acquire a portfolio of middle-market co-investments in an all-stock acquisition valued at £56.5m.

The conditional agreement is with Private Equity (PE1) IC Ltd, SPL Private Equity (PE2) IC Ltd, and SPL Integrated Finance (PE3 IC Ltd).

The co-investment portfolio consists of a pool of 38 investments with leading fund managers primarily invested in the UK, Germany and France.

Chairman Trevor Ash said: "This acquisition is part of JPEL's strategy of continually repositioning its private equity portfolio.

"Currently, JPEL's existing portfolio is weighted towards lower-middle market companies and the addition of the co-investment portfolio enables JPEL to gain access to middle market companies managed by leading private equity sponsors."

Under the terms of the acquisition, which has been approved by the Board of Directors of both JPEL and the SPL Funds, the purchase price of £56.5m will be adjusted for any capital calls or distributions made by the co-investment portfolio between the day on which the acquisition agreement was signed and the closing date.