Key Points
(Bloomberg) -- JPMorgan Chase & Co. has held discussions to partner with FS Investments and Octagon Credit Investors to expand its reach in the $1.7 trillion private credit market, according to people with knowledge of the matter..
Talks with FS Investments are more advanced, said the people, asking not to be identified because the conversations are private..
A partnership with FS would involve the asset managers global credit business, which is separate from the firms joint venture with KKR & Co., one of the people said..
The US bank has held talks with dozens of firms at is seeks to pull together a group of lenders to help fund private credit deals it originates, in an effort to be more competitive against private credit giants such as Ares Management Corp. and Blackstone Inc. ..
The rapid expansion of the private credit market has cut into the profits of banks leveraged finance desks and prompted JPMorgan and others to set up direct lending operations of their own..
