(Reuters) – JPMorgan Chase (JPM) mentioned on Monday it was setting apart one other $50 billion for its direct lending push, because the Wall Road big appears to be like to broaden its foothold within the quickly rising non-public credit score market.
Conventional lenders similar to JPMorgan, Citigroup, and Wells Fargo are speeding to seize an even bigger slice of the booming market that has been dominated by non-public capital suppliers.
The asset class is predicted to broaden to $3 trillion by 2028, reflecting stronger momentum than up to now two years, in response to Moody’s.
JPMorgan, since 2021, has already deployed over $10 billion throughout greater than 100 non-public credit score transactions serving company and sponsor shoppers, the financial institution mentioned.
It has additionally tied up with a number of co-lending companions which have allotted practically $15 billion extra to the non-public credit score push.
“Pairing our huge origination platform with our lender shopper base has supercharged our capability to ship in measurement for debtors and elevated deal circulate for lenders,” mentioned Kevin Foley, world head of capital markets at JPMorgan.
Banks have more and more additionally joined forces with funding companies to additional their push into the non-public credit score market.
Citigroup final yr teamed up with asset administration big Apollo for a $25 billion non-public credit score platform, whereas Wells Fargo in 2023 partnered with funding agency Centerbridge Companions on a $5 billion direct lending fund.
(Reporting by Arasu Kannagi Basil in Bengaluru; Modifying by Vijay Kishore)