Home / Business and Economy / JM Financial Bets Big on Private Markets for Profit Surge
JM Financial Bets Big on Private Markets for Profit Surge
15 Dec
Summary
- Private markets aim to surpass capital markets in profitability within three years.
- JM Financial allocates ₹6,000 crore, its largest investment, to private markets.
- The company focuses on affordable housing with strict credit checks and low defaults.
JM Financial is undergoing a significant restructuring, identifying wealth management and private markets as its primary growth engines. The company projects that private markets could become its most profitable segment within the next two to three years, potentially outperforming its established capital markets business. This strategic emphasis is underscored by a substantial allocation of ₹6,000 crore towards private market ventures.
The firm's operational framework now encompasses four core businesses: capital markets & corporate advisory, wealth & asset management, private markets, and home loans. The private markets division specifically targets private companies, structured credit, private equity, and distressed assets, leveraging JM Financial's NBFC capital and family office network. This integrated approach aims to capture value across a company's lifecycle, from early-stage investment to IPO.
In parallel, JM Financial is expanding its wealth and asset management arms and is committed to its affordable housing segment. This division maintains robust growth through rigorous credit checks and risk mitigation, reporting low default rates. The company's NBFC primarily serves as a liquidity provider for private markets, focusing on wholesale lending and credit syndication.
