JPMorgan raising $3bn to grow its private credit strategy
JPMorgan Chase is believed to be raising between $2.5bn and $3bn to grow its private credit strategy.
The New York-based lender has also allocated more than $10bn of its own balance sheet cash for private credit deals.
According to several reports, the lender is targeting a wide range of investors including sovereign wealth funds, pensions, endowments and alternative asset managers. The bank is said to be seeking commitments of at least $500m from some investors.
People familiar with the deal said that terms could be finalised within the next few weeks.
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JPMorgan intends to originate loans, retain a small chunk of each financing, and syndicate the rest of the debt to its partners, sources said.
The private credit market has been attracting attention from the world’s leading private banks and investment managers lately. Earlier this month it was reported that Ares Management was set to close the largest ever direct lending fund, valued at more than €20bn (£17.13bn).
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Meanwhile, Allianz Global Investors raised €300m from approximately 10 European investors in the first closing of its latest European private credit impact fund, while KSL Capital Partners’ latest private credit fund has raised $1.26bn, beating its $1bn target.
And at the start of the year, a senior executive at AllianceBernstein urged investors to increase their allocations to the private credit market this year as new opportunities emerge.
Preqin has estimated that the private credit market is worth approximately $1.5trn at present, and is set to grow to $2.8trn by 2028.