JP Morgan Chase is close to relinquishing control of a $22 billion private equity business, turning loose part of a firm it acquired before the financial crisis and helped quadruple in size.

The New York lender is working to finalise a deal to sell the majority of Highbridge Capital Management's private equity business to Highbridge chief executive Scott Kapnick and other members of his management team, according to people familiar with the matter. A major factor was the team's desire to be lifted from the constraints of a large bank, these people said.