JPMorgan Chase & Co is holding discussions with sovereign wealth funds, pension funds, endowments and alternative asset managers as it looks for a partner to help accelerate its push into the booming private credit sector, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the matter as revealing that the discussions, which began in recent months, are at an early stage, with the structure and terms of the potential partnership yet to be finalised. A decision on whether to partner with one company or agree multiple partnerships has also yet to be made.
As well as approaching firms about a partnership, JPMorgan, which is reportedly looking for third-party capital to supplement the $10bn of cash it has already allocated to its private credit strategy, has also received inbound inquiries from others, according to Reuters’ sources.
Senior JPMorgan executives earlier this year informed clients that the $10bn is just a starting point, with the bank’s global head of debt capital markets Kevin Foley saying back in March: “I’m not going to put a number on it, but it’s a deep pool. We’re committed to it [private credit], and we’re long-term players in it.”
