SINGAPORE – JPMorgan Chase is eyeing strong growth opportunities in the Asia Pacific private credit sector, with a focus on countries throughout Asia, including Australia and India, as of Thursday.
The American banking giant has been steadily expanding its private credit operations in the region since 2019, aiming at mid-sized firms that lack investment-grade credit ratings but maintain solid business fundamentals.
WHY IT MATTERS
Due to global trade tensions and market instability, some companies are turning to private credit as a more adaptable funding source compared to traditional lending. This shift has helped fuel the rise of the private credit market, now valued at $2 trillion—up from just $500 million a decade ago, according to analysts.
BACKGROUND
In February, JPMorgan Chase committed an additional $50 billion toward its direct lending strategy, aiming to strengthen its presence in this fast-growing sector.
KEY COMMENTS
“Asia accounts for more than half of global GDP growth, and it hosts some of the world’s largest economies,” said Chen on Thursday.
She added, “Asia’s public debt market is only around $1.5 trillion, despite strong GDP growth. In private credit, annual deal flow has been about $200 billion over the past two years, suggesting there’s a major gap to fill. We believe Asia’s private credit market is still in its early stages.”
Click here for more on Banking