Does anyone have an update on this platform — or any direct interaction with the team? I’ve been hearing that JPM is building out a private credit / direct lending platform (i.e., Global Performing Credit under its Private Capital / Alternatives / AM umbrella) since before COVID struck, but have yet to see them active in the space at all. I see that they’ve tapped a group head and added a few senior folks over the last 6 months (via press releases below), but is anyone familiar or have any related update(s)? Generally curious given it is JPM and I’m surprised they’ve taken this long to become active in the space. Cheers.
https://www.prnewswire.com/news-releases/jp-morga…
Can confirm the direct lending arm is legitimate. It is located within the commercial bank and issues unitranche staple financing for the regional investment bank’s sell side processes and offers direct lending products to middle market sponsors, as well.
This is JPMs but big push to expand the middle market lending capabilities and compete with Goldman’s cross markets group.
The credit push that OP is referring to is not the same as the one in commercial banking, but instead it's under AM, specifically Global Alts.
And yes to OP's point, JP is looking to expand this part of the business, with focuses from middle market direct lending to special sits (in their GSS Lynstone Franchise) to infra debt among other things. It’s also funny to think that HPS (Highbridge Principal Strategies) used to be part of Highbridge which JPM still owns a majority stake in - but eventually spun out and what JP is looking to achieve with this credit push is in essence replicating what HPS is today.
No real indication as to performance for private credit due to how the new the groups are (slightly off-topic but same goes for the JPM growth equity team, with senior hires from GS MBD). That said the GSS franchise has been on an absolute TEAR (supposedly with IRRs > 35%, that said it's one of those high IRR low MOIC type of situations given the recency of the first fund). That said the public SS trades seem to placed well and taking advantages of dislocations at the onset of COVID crash.
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