JPMorgan Chase has launched a new division within its commercial and investment banking sector, with focus on tailored financing solutions across both public and private markets, reported Bloomberg.
The initiative, referred to as Strategic Financing Solutions, will involve a collaborative effort among banking, markets, and sales teams, as outlined in an internal memo.
The new unit will initially concentrate on structured private solutions, infrastructure finance, strategic asset-backed securities finance, merchant banking, and direct lending.
Doug Petno and Troy Rohrbaugh, co-heads of the commercial and investment bank, noted in the memo, “Financing needs are becoming increasingly complex while investors are seeking exposure to new markets.”
They added that the team “will focus on delivering alternative solutions to our corporate and sponsor clients.”
Warfield Price, who leads general industries leveraged finance, and Masi Yamada, global head of corporate structuring, will jointly oversee the new group while maintaining their existing responsibilities.
They will report to Kevin Foley, global head of capital markets, and Brad Tully, global head of private side sales and corporate derivatives, as per the memo seen by Bloomberg News.
This move is intended to capitalise on the merging of public and private markets, particularly as more US firms opt to remain private for extended periods.
An example of this trend is 3G Capital’s intended acquisition of Skechers USA, for which JPMorgan provided advisory services in a $9.4bn take-private transaction announced earlier this year.
This deal involved a combination of cash and debt, with JPMorgan facilitating two term loans, two notes, and a revolving credit facility.
The newly formed business will also encompass JPMorgan’s direct-lending operations, for which the bank allocated an additional $50bn earlier this year, following the deployment of over $10bn across 100 transactions since 2021.
Recently, JPMorgan Chase appointed David Frame as the global CEO of its private bank. He previously served as the CEO of the US private bank.
“JPMorgan Chase launches Strategic Financing Solutions unit” was originally created and published by Private Banker International, a GlobalData owned brand.
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