(Reuters) – JPMorgan Chase (JPM) said on Monday that it set aside another $ 50 billion for its direct credit, because the Wall Street Giant looks out on its feet in the fast -growing private credit market.
Traditional lenders such as JPMorgan, Citigroup and Wells Fargo are hurrying to take a larger part of the flowering market dominated by private capital providers.
The activa class is expected to expand to $ 3 trillion in 2028, which reflects a stronger momentum than in the past two years, according to Moody’s.
JPMorgan, since 2021, has already deployed more than $ 10 billion in more than 100 private credit transactions for companies and sponsor customers, the bank said.
It is also connected to several co-loan partners who have assigned almost $ 15 billion more to the private credit push.
“Linking our enormous platform with our customer base of the lender has our ability to deliver in size for lender and an increased deal stream for lenders,” said Kevin Foley, worldwide head of capital markets at JPMorgan.
Banks have increasingly joined forces with investment firms to promote their push to the private credit market.
Citigroup collaborated with Asset Management Giant Apollo last year for a $ 25 billion private credit platform, while Wells Fargo worked with investment company Centerbridge Partners in a $ 5 billion Direct Lending Fund in 2023.
(Reporting by Arasu Kannagi Basil in Bengaluru; adaptation by Vijay Kishore)
