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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 response to 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 finally determined to not pursue a deal.
Whereas the unit is searching for an acquisition goal, it might finally resolve to develop its personal credit score choices organically, one of many sources stated.
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 steadiness sheet for direct lending, and it’s trying 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 corresponding to personal credit score.
“Non-public credit score is a vital rising area and we consider we’ve a sophisticated technique throughout the whole business and funding financial institution,” he stated.
“We consider we’re uniquely positioned to be an necessary 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 recommended that the general personal credit score market might be price greater than $3tn.
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