J.P. Morgan dedicates balance sheet and adds co-lenders to provide private credit to clients
J.P. Morgan announced today at its 30th annual Global Leveraged Finance Conference a significant expansion to its private credit commitment. The firm is allocating $50 billion from its balance sheet, along with nearly $15 billion from multiple co-lenders. This strategic move is designed to extend the firm's direct lending capabilities and provide tailored private credit solutions to meet the evolving needs of clients.
Since 2021, J.P. Morgan has successfully deployed over $10 billion across more than 100 private credit transactions, serving both corporate and sponsor clients. This latest commitment underscores the bank's dedication to being a leader in both the broadly syndicated and private credit markets.
"We aim to support our clients with products and solutions that best meet their capital structure needs, whether that's a direct or syndicated loan or a bond," said Kevin Foley, global head of Capital Markets at J.P. Morgan. "Our vast client relationships, paired with the size and scale of our origination capabilities, enable us to be a trusted financing source through a company's entire growth cycle."
The convergence of the broadly syndicated and private financing markets is creating unprecedented opportunities for clients, offering greater optionality and customized solutions to address their unique financing needs. As the leading investment bank with the #1 debt capital markets franchise and thousands of clients across the middle market and global corporate ecosystem, J.P. Morgan is uniquely positioned at the forefront of this evolution.
"We proudly bank 80,000 companies globally through our Commercial and Investment Bank, including 32,000 middle market clients across the U.S.," said Jamie Dimon, Chairman and CEO of JPMorganChase. "Extending this effort provides them with more options and flexibility from a bank they already know and see in their communities, and is known for being there during all market environments."
J.P. Morgan's enhanced direct lending platform is poised to drive significant impact, helping clients navigate today's dynamic financial landscape. The firm's strategic relationships with co-lenders further amplifies its ability to deliver comprehensive and competitive financing solutions.
As private credit has grown exponentially to a $2 trillion market, direct lenders are sitting on hundreds of billions of dollars of dry powder to deploy. "Pairing our vast origination platform with our lender client base has super charged our ability to deliver in size for borrowers and increased deal flow for lenders. Given our current success from our co-lending initiative, we continue to look for opportunities with new partners to augment our capabilities on large deals," said Foley.
Additional details around the co-lending arrangements have not been disclosed.
About J.P. Morgan's Commercial & Investment Bank
J.P. Morgan's Commercial & Investment Bank is a global leader in banking, payments, markets and securities services. Start-ups, companies, governments and institutions entrust us with their business in more than 100 countries worldwide. With $35.3 trillion of assets under custody and $1.01 trillion in deposits, the Commercial & Investment Bank provides strategic advice, raises capital, manages risk, offers payment solutions, safeguards assets and extends liquidity in global markets. Further information about J.P. Morgan is available at www.jpmorgan.com.
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