Executives George Gatch and Bob Michele said the firm is in talks with institutional investors to raise capital and has already secured some commitments, according to Bloomberg News.
The move comes as the private credit sector faces pressure, with investor concerns over defaults, elevated rates, and AI-driven disruption—particularly in software—driving a rise in redemption requests.
JPMorgan CEO Jamie Dimon reiterated Federal Reserve Chair Jerome Powell’s statement that, “in the grand scheme of things, private credit probably does not present a systemic risk.”
If the bank’s plans come to fruition, JPMorgan could significantly narrow the competition in the space, as many banks and asset managers have been hit hard by turmoil in private credit.
It could also, down the line, give JPMorgan a path to offer this strategy to its wealthier clients, though leadership emphasized that is not on the agenda at the present time.
This strategy represents JPMorgan’s biggest push in recent years to regain footing in the $1.8 trillion private credit market.
In 2016, the bank spun out a division that later went on to become HPS Investment Partners, a decision executives later came to view with regret, Bloomberg noted.
“It’s an interesting time given the growth of the private credit business and some of the dislocations. We think there’s a great opportunity going forward,” Gatch, chief executive officer of JPMorgan Asset Management, told Bloomberg.
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