JPMorgan Chase (JPM) is making a big move in private credit with a $50 billion push into direct lending. This plan aims to help private equity-backed businesses secure financing without relying on traditional debt markets.
Since starting the program in 2021, the bank has already issued over $10 billion across 100+ private credit deals.
JPM Is Teaming up for Bigger Deals
JPMorgan isn’t doing it alone. It’s teaming up with other lenders who are adding about $15 billion on top of its $50 billion investment. This partnership helps the bank take on bigger deals while spreading the risk.
Kevin Foley, JPMorgan’s global head of capital markets, says this approach “supercharges” their ability to deliver large loans while keeping a steady deal flow for their partners.
Why Private Credit is Booming
Private credit is on fire. According to research by Moody’s, the market is worth about $2 trillion today and could hit $3 trillion by 2028. This surge is partly due to stricter rules after the 2008 financial crisis, which made it harder for traditional banks to hold risky loans.
As a result, new lenders like JPMorgan, Citigroup (C), and Wells Fargo (WFC) have stepped in to fill the gap. Just last month, Goldman Sachs (GS) rolled out a new division, Capital Solutions Group, to tap into the booming private credit market. And back in September 2024, Citigroup and Apollo Global (APO) announced a $25 billion partnership in this space.
With private credit on the rise, JPMorgan’s $50 billion push could make it a major player in how businesses secure financing in the future.
Is JPM Stock a Buy?
The stock of JPMorgan Chase has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 12 Buy and six Hold recommendations issued in the last three months. The average JPM price target of $275.93 implies 5.58% upside from current levels.
