JPMorgan is seeking to offload risk tied to more than $4 billion in loans to private equity funds, Financial Times reported on Friday, citing people familiar with matter.
The lender is in talks with investors over a transaction that would allow it to transfer risk tied to ‘net asset value loans’ backed by private equity fund assets, the report said.
Reuters could not immediately verify the report. JPMorgan did not immediately respond to Reuters’ request for comment.
Investor sentiment toward private credit has weakened in recent months, as concerns mount over loosening lending standards and the potential for AI to disrupt the software sector — a key area of exposure for many funds.
The Wall Street bank was working on a risk transfer that would allow it to retain the NAV loans on its balance sheet while shifting a portion of potential losses to investors, FT added.
(Reporting by Preetika Parashuraman in Bengaluru; Editing by Sonia Cheema)
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