JPMorgan Chase & Co is significantly scaling up its direct-lending business, allocating an additional $50bn to expand its presence in the fast-growing market, having already deployed $10bn across more than 100 deals since 2021, according to a report by Reuters.
The report cites Troy Rohrbaugh, Co-Head of JPMorgan’s Commercial and Investment Bank, and Kevin Foley, Global Head of Capital Markets, as highlighting, that in addition, co-lending partners have contributed $15bn to the initiative.
“It’s a number we’re completely comfortable with, assuming the market and risk dynamics remain favourable — which we believe they do,” Rohrbaugh said in an interview. “If we reach that threshold and see the need to expand further, we certainly have the capacity to do so.”
JPMorgan spent much of last year assembling its co-lending program, in which it originates loans and invests alongside partner firms. The group now includes seven companies, sources say, among them FS Investments, Cliffwater, Shenkman Capital Management, Octagon Credit Investors, and Soros Fund Management.
JPMorgan’s expansion highlights how major banks are increasingly encroaching on the $1.6tn private credit market, which was once dominated by asset managers such as Blackstone, Ares Management, and Apollo Global Management. As these firms finance ever-larger deals, banks including Citigroup and Goldman Sachs are moving aggressively to defend their lending turf by offering direct-lending products.
JPMorgan’s direct-loan offerings cater to middle-market companies and private equity sponsors, with deal sizes ranging from $50m to $4.5bn. Foley emphasised the bank’s “product-agnostic” approach, balancing direct-lending with traditional syndicated loans to provide clients with flexible financing options.
In a strategic move last year, JPMorgan merged its commercial banking and corporate & investment banking divisions, creating a combined operation under Rohrbaugh and Doug Petno. The restructuring combined JPMorgan’s vast network of over 2,000 commercial bankers with its capital markets and trading expertise.
