JPMorgan forms new private market advisory group
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The news: JPMorgan Chase is bulking out its investment bank with a new team to help companies raise money from private markets, as the US’ biggest lender deepens its involvement in the alternative asset class.
The context: The bank told the Wall Street Journal that the new team, private capital advisory and solutions, will be helmed by Keith Canton, who most was most recently co-head of equity capital markets in the Americas.
“The private markets have just dwarfed the public markets lately,” Canton, co-head of equity capital markets in the Americas, who will helm the new team told the masthead. “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.”
The new team will be a hybrid group offering M&A advice while working with the capital-markets division.
The team plans to connect investors with companies looking to raise private capital, with bankers advising on early stage equity, preferred stock and convertible bonds. They will also work on secondary funds and other avenues for private-equity firms to raise money.
As private startups like SpaceX and OpenAI remain private for longer, banks have been scrambling to offer capital raising outside of public markets.
