JPMorgan Chase has formed a new business unit, Chase Capital, to provide subordinated debt and equity to help privately-held companies grow or recapitalise their businesses. The company has closed three deals, including an equity investment in Chicago-based Republic Windows & Doors, LLC, in January and expects to close financing for four additional customers in the first quarter.
Chase Capital, based in Chicago, will finance growth, turnaround situations, and recapitalisations of Chase’s middle market banking clients. This new business will complement traditional bank credit as well as asset-based lending to companies throughout the United States and Canada.
“Chase Capital can help many companies that are looking to restructure debt, as well as companies whose growth and capital needs outpace what they can borrow through traditional bank-secured lending,” says David Donovan, the co-head of Chase Capital. “We see the need among Chase customers, and across the market, and we believe a bank-affiliated provider can have a competitive advantage throughout the business cycle.”
Donovan co-leads Chase Capital with Dave Schabes, reuniting the team that ran Banc One Capital Markets from 2000 to 2002.
“We expect to generate most of our deals through Chase’s extensive middle market bank,” adds Schabes. “Our bankers can now let their customers know that they can consider Chase for all their lending needs rather than turning to other alternative capital providers.”