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Credit Suisse, JPMorgan Take Cue From Goldman in Battle With Private Credit

  • Banks are setting up direct lending funds, imitating Goldman
  • Wall Street has lost ground in lucrative leveraged business
An office worker enters the JPMorgan Chase & Co. headquarters in New York.

An office worker enters the JPMorgan Chase & Co. headquarters in New York.

Photographer: Michael Nagle/Bloomberg
Updated on

Wall Street banks, getting trounced by money managers in the battle for the high-fee business of financing risky companies, are setting up direct lending operations to fight back.  

Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley are among the banks creating units to lend money directly to junk-rated companies for areas like leveraged buyouts and acquisitions, or building up their businesses. They’re following a path that Goldman Sachs Group Inc. has successfully taken since the 2008 financial crisis.