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JPMorgan Chase said it will allocate $ 50 billion to the conjunction of companies that are fraught with risks supported by private stock companies as they provide them with the prosperous private credit market.

The largest American bank by assets said that it allocated $ 50 billion in its private capital and has obligations for $ 15 billion from other investors to provide loans directly to the companies, bypassing traditional debt markets.

Jpmorgan Live lending batch was launched In 2021, until now it was published 10 billion dollars in more than 100 special credit transactions.

This announcement comes at a time when the traditional Wall Street lenders are looking to enhance their own offers in nearly two dollars Private credit The assets category, which has grown dramatically since the regulations adopted after the global financial crisis of banks have pushed away from the risk -framed loans to their public budgets.

Many of the largest JPMorgan competitors have announced partnerships with special credit boxes. Late last year, City Group A partnership of $ 25 billion in partnership revealed With Apollo Global Management, which was followed by the Wells Fargo project with Asset Manager Centerbridge.

Others, such as Goldman Sachs and Morgan Stanley, have turned into the arms of their wealth management and assets, which have allocated money to invest in this sector.

Jimmy Damon, CEO of JPMorgan, said that the effort made to companies customers “with more options and flexibility from a bank they know already and see them in their societies, and is famous for being there during all market environments.”

Damon told investors last year that private credit “has some real positives” because it allowed long -term financing, which was usually available by raising money through bonds and joint loans. However, he criticized how the industry has priced the loans on its books and said that bad actors may cause problems.

JPMorgan has so far made with seven asset managers in its own credit efforts, including Cliffwateer, FS Investments, Octagon Credit Investors, Shenkman Capital Management and Soros Fund Management, according to someone who briefed him. Executive officials hope to add other managers in the coming months to support his fiery strength.

The bank’s decision to benefit from its public budget is partially from Sell ​​it to HPS investment managementOne of the largest private credit players, in 2016. The leading leaders at JPMorgan did not have a little appetite for investment in the unit in the face of the increasing organizational audit, prompting HPS founders to buy business.

In the years after this, the assets category exploded, while attracting credit funds for hundreds of billions of dollars from insurance companies, pensions and sovereign wealth funds. Private credit loans generally bear higher interest rates than bank loans, but can give the borrower more flexibility.

These money allowed managers such as Ares Management, Blue Owl Capital and Apollo Global Management to write 1 billion dollars, and in turn, it created a rival for high -yielding traditional loan markets. HPS He agreed to sell himself To Blackrock for $ 12 billion last year.

Special credit became one of the few ways that acquisition groups can be made by financing their own acquisitions when the markets acquired in 2022, where they got their share in the market and profitable fees away from banks throughout Wall Street. By back down from that experience, banks looked at their funding solution.

The immediate pressure on banks decreased to provide credit loans, especially with the rise in credit markets in 2023 and 2024. The banks helped re -financing many private credit loans in the common markets, where Damon indicated last year that “private credit costs more money for the largest part “.

He added, “This changes all the time.”