According to a report from Bloomberg citing sources familiar with the matter at hand, JPMorgan Chase & Co’s asset- and wealth-management arm is raising monies for a mezzanine fund.
The report states, JPMorgan Chase & Co’s asset- and wealth-management arm plans to raise as much as $1 billion for a fund that will focus on providing financing to companies using a mix of debt and equity.
The firm has already raised a significant portion of its target, said sources.
JPMorgan declined to comment.
Incidentally, mezzanine debt is a hybrid of debt and equity financing, which provides the lender the right to convert to an equity interest in the company in case of default, after other senior lenders are paid.
Typically unsecured, it typically commands a much higher yield than other debt instruments.