James B. Lee, Jr.

James B. Lee Jr. (born 1952), commonly known as Jimmy, is an investment banker, notable for his role in the development of the leveraged finance markets in the U.S. in the 1980s. Lee is widely credited as the architect of the modern-day syndicated loan market.^[1]

Lee currently serves as vice chairman of JPMorgan Chase & Co. and a member of the bank’s executive committee. Additionally, Lee serves as Co-Chairman of JPMorgan's investment bank.

Career

Lee joined Chemical Bank in 1975 and worked in a variety of lending businesses until 1980, when he founded and ran Chemical’s merchant bank in Australia. In 1982, he returned to the US and started the bank’s syndicated leverage finance group, which constituted the origins of the investment banking business at Chemical and later Chase Manhattan Bank. Lee ran the investment bank until the merger with J.P. Morgan & Co. in 2001.^[1]

Following Chemical’s merger with Manufacturers Hanover in 1994, Lee founded the bank’s high yield (or junk bond) business, which was the bank's first public securities operation. At the same time, he built the bank’s financial sponsor coverage business focused on private equity firms as well as the bank's mergers and acquisitions business.^[1]

By organizing high yield with loan syndications and private equity coverage, and the newly formed M&A group, this led to a variety of market innovations which Chase pioneered. Lee also led the team that resulted in Chase acquiring Hambrecht & Quist which gave the bank its first public equity business and first dedicated technology investment banking practice. He has remained active in the technology industry.

In 2000, Lee was effectively demoted in favor Geoffrey Boisi^[2] but within two years Biosi was out and Lee was again leading investment banking at JP Morgan.^[3] By 2007, Lee was placed at the center of a New York Times illustration title "Masters of the New Universe" where he was connected with some of the largest leveraged buyout transactions of the past decade.^[4]

Lee led the J.P. Morgan teams that executed the $25 billion Alibaba IPO, the largest IPO in history; the $23 billion General Motors IPO, the second largest U.S. IPO; and the $41 billion common stock sale of the U.S. Treasury’s ownership of AIG, resulting from the U.S. Government’s bailout of the company. He also led the negotiations with the U.S. Treasury for the financial restructuring of Chrysler. Most recently, Lee also advised Comcast on their announced acquisition of Time Warner Cable and planned divestitures of systems to Charter (pending), the Dell Board of Directors Special Committee on the buyout of Dell by Michael Dell and Silver Lake, GE on its $30 billion sale of NBC to Comcast, United Airlines in its merger with Continental Airlines, News Corporation on its purchase of Dow Jones, led the IPO of The Carlyle Group, and co-led the IPOs of Facebook and Twitter.

Personal

He received a B.A. from Williams College in 1975, where he double majored in Economics and Art History. He is also a graduate of the Canterbury School (1971). Lee had a personal net worth of $185 million in 2010.

References

Private equity and venture capital investors Investment strategy Buyout Venture Growth Mezzanine Secondaries History History of private equity and venture capital Early history of private equity Private equity in the 1980s Private equity in the 1990s Private equity in the 2000s Investor types Private equity investors Venture capitalists Corporate raiders