FUNDRAISING NEWS | October 01, 2024
JPMorgan Chase is partnering with Cliffwater, FS Investments, and Shenkman Capital Management in a strategic push to expand its presence in the $1.7T private credit market, according to reporting by Bloomberg citing people knowledgeable on the matter.
As part of the collaboration, JPMorgan will originate loans and invest alongside these direct lenders, who will have limited discretion to decline participation in transactions over a specified period.
Representatives for JPMorgan, Cliffwater, and Shenkman declined to comment, while FS Investments confirmed their involvement. The deal is part of JPMorgan's effort to regain market share lost to private credit players, who have rapidly expanded and eroded profits from banks' leveraged finance operations.
JPMorgan has been actively pursuing partnerships with private credit firms since late 2023 and allocated over $10B from its balance sheet to support its efforts, according to previous Bloomberg reports. This latest move aligns with similar strategies by other banks, such as Citigroup’s recent partnership with Apollo Global Management and Wells Fargo’s collaboration with Centerbridge Partners, aimed at capitalizing on the growing direct lending sector.
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