JPMorgan creates new unit to tap funding demand

JPMorgan Chase has created a new unit aimed at providing alternative financing strategies to clients, according to an internal memo seen by Reuters on Monday.

The new unit, strategic financing solutions (SFS) - comprising experts from banking, markets and sales, will initially focus on structured private solutions, infrastructure finance, strategic asset-backed securities finance, merchant banking and direct lending.

"Financing needs are becoming increasingly complex while investors are seeking exposure to new markets," Doug Petno and Troy Rohrbaugh, co-heads of the commercial & investment bank, wrote in the memo.

The new team will focus on delivering alternative solutions to their corporate and sponsor clients, while also providing access to transactions in both public and private markets to their investor clients, according to the memo.

Warfield Price and Masi Yamada, two senior executives, will co-head the SFS group in addition to their current roles. They will report to Kevin Foley, global head of capital markets, and Brad Tully, global head of corporate derivatives and private side sales, who will oversee the initiative.

The move to create a new unit comes at a time when banks are looking to tap into the rapidly growing private credit market, which has attracted increasing investor interest as companies seek funding outside traditional bank financing.

Private credit refers to loans provided by non-bank lenders, which are typically made to risky borrowers or companies looking to finance mega buyouts with debt.

Earlier this year, Goldman Sachs announced the creation of Capital Solutions Group to focus on financing large deals and providing loans to corporate clients.

JPMorgan's plans for the new unit were first reported by the Bloomberg News.