JPMorgan Chase (NYSE:JPM) is preparing to go all-in on private companies.
For the past year, the bank has been quietly hiring programmers and creating products for a new fintech business that aims to provide an array of services to start-ups and investors around the world, according to people with knowledge of the matter.
The business, known internally by the code name “Project Bloom” because of its goal of helping early-stage private firms grow, is run by Michael Elanjian, head of digital private markets, said the people, who declined to be identified speaking before its launch.
JPMorgan, the biggest U.S. bank by assets, raised eyebrows last month when it said that expenses would surge this year, in part because of an annual technology budget that has grown to at least $12 billion. CEO
Jamie Dimon is aggressively investing to help his bank battle fintech firms, and executives see an opportunity to create a private-markets winner before start-ups can dominate the space.
A key part of Project Bloom is a digital network for JPMorgan clients that will match start-ups with investors, helping them in fundraising rounds, said the people.
Other planned-for services include helping companies sell shares in tender offers or providing loans on private stakes, offering a digital interface for secondary trading of private company stock, and helping venture capital firms raise new funds.
JPM shares dumped $6.33, or 4.3%, to $141.63.