JPMorgan Chase (JPM) is forming a new advisory team focused on helping companies raise private capital, offering an alternative to public listings as the investment bank seeks to further capitalize on the private markets boom, according to a Friday media report.
The new, hybrid Private Capital Advisory and Solutions group advises on mergers-and-acquisitions-related activities while collaborating alongside the capital markets unit, the Wall Street Journal reported.
Connecting investors with firms seeking to raise private capital, bankers will reportedly advise clients on early-stage equity, preferred stock and convertible debt, and will also work on secondary funds and related liquidity solutions for private equity firms.
JPMorgan (JPM) is already a sizable player in private markets. Its private equity unit recently raised $1.44B for its 12th flagship fund, well above target.
“The private markets have just dwarfed the public markets lately,” said Keith Canton, co-head of equity capital markets in the Americas, who will lead the new unit, the WSJ reported. “Historically, you only needed to think about an IPO or a sale as an exit. But there’s much more you can do in the middle.”
JPMorgan (JPM) didn’t immediately respond to Seeking Alpha’s request for comment.