JPMorgan Chase & Co is believed to be in advanced talks with FS Investments and Octagon Credit Investors to expand its private credit business.
According to multiple reports, the investment bank is putting together a group of lenders to help fund the private credit deals that it originates. The talks are currently focused on the terms of the partnerships.
Bloomberg has previously reported that JPMorgan was looking into creating a syndication group where members would take a slice of each loan. It was aimed at prospective investors including sovereign wealth funds, pensions and endowments.
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The private credit market has been tipped for a boom this year, as a number of loans dating back to the pandemic are due to mature.
Preqin has estimated that the private credit market was worth $1.7trn (£1.34trn) last year, and is set to grow to $2.8trn by the end of 2028. A number of asset managers are currently positioning themselves to take advantage of this growth, by launching new private debt funds and expanding their existing credit departments.
Last week, Goldman Sachs Alternatives launched a private credit fund aimed at the wealth market. And earlier this month, New York based hedge fund Third Point announced plans to invest in private credit for the first time, as a complement to its existing portfolio.
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