J.P. Morgan is expanding its private credit commitment, allocating $50 billion from its balance sheet, along with nearly $15 billion from multiple co-lenders.
The strategic move – announced at the firm’s 30th annual Global Leveraged Finance Conference this week — is designed to extend the firm’s direct lending capabilities and provide private credit solutions for its clients.
Since 2021, J.P. Morgan has deployed more than $10 billion across more than 100 private credit transactions, serving both corporate and sponsor clients.
“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,” Kevin Foley, global head of Capital Markets at J.P. Morgan, said. “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. As the leading investment bank, J.P. Morgan is positioned at the forefront of this evolution. Further, the enhanced direct lending platform should help its clients navigate this dynamic financial landscape.
“We proudly bank 80,000 companies globally through our Commercial and Investment Bank, including 32,000 middle market clients across the U.S.,” Jamie Dimon, chairman and CEO of JPMorgan Chase, said. “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.”
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,” Foley added. “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.”