JPMorgan is forming a new team to provide consulting services for private markets

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JPMorgan
01-16 20:02
3 sources

Summary

JPMorgan is creating a new “Private Capital Advisory & Solutions” team to help companies raise private capital as an alternative to IPOs Wallstreetcn+ 2. This strategic move, which involves M&A advice and connecting companies with investors, aims to build early relationships for future IPOs or sales Sina Finance and comes after the bank reported a surprise decline in Q4 investment banking revenue Sina Finance.

Impact Analysis

This isn’t just a new business line; it’s a strategic pivot, and the timing is key. It comes right after their Q4 investment banking revenue unexpectedly dropped 5% Sina Finance. They’re not just waiting for the IPO market to recover; they’re going where the deals are happening now—the private markets.

The surface story is about providing an alternative to IPOs Sina Finance. The real game is locking in the next generation of clients long before they’re big enough for a public listing. It’s a farm system for their M&A and ECM desks. They’re willing to accept lower fees upfront to own the relationship from start to finish Sina Finance. This is a direct acknowledgment that massive value is created before the IPO, and they want a piece of it. This makes JPM’s franchise more resilient to public market volatility and is a major threat to boutique placement agents who can’t compete.

Event Track

JPMorgan