(Reuters) – JPMorgan Chase & Co <JPM.N> is raising money for a mezzanine fund through its asset- and wealth-management arm, Bloomberg reported on Monday citing people familiar with the matter.
The firm is planning to raise as much as $1 billion (779 million pounds) from investors for a fund that would focus on providing financing to companies using a hybrid of equity and debt, the report said. (https://bloom.bg/38j74jz)
The Wall Street bank has already raised a significant portion of its target, the report added.
JPMorgan declined to comment.
Mezzanine debt, a hybrid of debt and equity financing, gives the lender the right to convert to an equity interest in the company in case of default, after other senior lenders are paid. Often unsecured, it typically demands a much higher yield than senior debt.
(Reporting by Bharath Manjesh in Bengaluru; Editing by Shailesh Kuber)