JPMorgan Chase & Co is on the acquisition hunt for a non-public credit score agency to spice up its presence within the sector.
In line with sources cited by Bloomberg, the US financial institution’s asset administration arm held talks to purchase Chicago-based Monroe Capital this 12 months however the two companies finally determined to not pursue a deal.
Whereas the unit is searching for an acquisition goal, it could finally determine to develop its personal credit score choices organically, one of many sources mentioned.
Learn extra: JPMorgan in talks to develop its personal credit score enterprise
JPMorgan has been extraordinarily bullish on the personal debt sector for a while now. Its funding financial institution has already earmarked greater than $10bn (£7.9bn) of its stability sheet for direct lending, and it’s seeking to associate with asset managers on personal credit score offers.
Throughout JPMorgan Chase’s investor day on 20 Could in New York, Troy Rohrbaugh, co-chief government of economic and funding banking, mentioned that the financial institution sees many alternatives for development in particular person purchasers segments and merchandise resembling personal credit score.
“Non-public credit score is an important rising house and we consider we now have a complicated technique throughout all the business and funding financial institution,” he mentioned.
“We consider we’re uniquely positioned to be an essential a part of all points of the ecosystem.”
And earlier this 12 months, JPMorgan’s personal financial institution praised the potential of direct lending within the personal credit score sector and instructed that the general personal credit score market might be price greater than $3tn.
