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JPMorgan Chase & Co is on the acquisition hunt for a personal credit score agency to spice up its presence within the sector.
In accordance 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 corporations in the end determined to not pursue a deal.
Whereas the unit is searching for an acquisition goal, it might in the end resolve to develop its personal credit score choices organically, one of many sources stated.
Learn extra: JPMorgan in talks to increase 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 steadiness sheet for direct lending, and it’s seeking to companion with asset managers on personal credit score offers.
Throughout JPMorgan Chase’s investor day on 20 Might in New York, Troy Rohrbaugh, co-chief govt of business and funding banking, stated that the financial institution sees many alternatives for progress in particular person purchasers segments and merchandise comparable to personal credit score.
“Non-public credit score is an important rising house and we consider we now have a sophisticated technique throughout your entire industrial and funding financial institution,” he stated.
“We consider we’re uniquely positioned to be an vital a part of all facets 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 steered that the general personal credit score market could possibly be value greater than $3tn.
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