JPMorgan Establishes a New Group to Capitalize on the Surge in Private Markets

JPMorgan Launches New Team to Support Private Capital Raising

JPMorgan Chase is expanding its investment banking services by forming a specialized group dedicated to helping businesses secure private funding, offering an alternative to traditional public offerings. This move reflects the bank’s belief that private markets will continue to play a leading role, even as some major IPOs are anticipated later in the year.

Shifting Trends in Capital Markets

The landscape of public stock markets has changed significantly, with fewer companies choosing to go public. Instead, many are turning to large investors for private funding and remaining privately held. Private equity firms are also holding onto their investments longer, often moving them into new secondary funds rather than selling outright. Meanwhile, institutional investors are increasingly directing substantial resources into private markets, seeking new opportunities.

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Although this year could see a resurgence in IPO activity, JPMorgan believes that the way companies seek funding has fundamentally changed.

“Private markets have far outpaced public markets recently,” said Keith Canton, co-head of equity capital markets for the Americas and leader of the new group. “In the past, companies mainly considered IPOs or outright sales as exit strategies. Now, there are many more options available in between.”

The newly established Private Capital Advisory and Solutions team will operate as a hybrid unit, providing both M&A guidance and collaborating closely with the capital markets division.

This group aims to connect investors with businesses seeking private capital. Their services will include advising on early-stage equity, preferred shares, convertible bonds, and facilitating secondary fund transactions for private equity firms.

While assisting private companies may not generate large immediate fees, it helps JPMorgan build relationships that could lead to lucrative deals if those companies eventually pursue a sale or public offering.

Understanding the Private Market Boom

Many of the most prominent and valuable U.S. companies remain privately held. For example, the largest stock offering in 2025 was a $40 billion deal by OpenAI, limited to a select group of investors chosen by the company’s leadership, including Sam Altman. Fewer than 50 investors participated in this exclusive round.

JPMorgan’s Broader Strategy

To address the expanding private sector, JPMorgan has launched a private-credit initiative and expanded its research coverage to include private firms.

These efforts are designed to keep the bank relevant among private companies, which often do not rely on major banks for capital in the same way public companies do.

“We’re adjusting our business to better reflect market trends,” said Kevin Foley, JPMorgan’s global head of capital markets. “Our goal is to be the first choice for clients, regardless of the product they select.”

The rapid growth of private markets has sparked calls to revitalize public markets, including from SEC Chairman Paul Atkins. Observers caution that the rise of private markets may benefit only those with significant wealth and access.

JPMorgan CEO Jamie Dimon has also voiced concerns about the expansion of private markets, attributing the shift to regulatory burdens that make public offerings less attractive, challenges posed by proxy advisers, and investors’ focus on short-term gains.

“This is a significant trend,” Dimon wrote in his 2024 letter to shareholders. “We need to ask ourselves if this is the direction we want to pursue.”