JPMorgan Expands M&A Team with High-Profile Hires from Rivals

JPMorgan Chase & Co has secured three senior investment banking professionals from Deutsche Bank and Goldman Sachs as it strengthens its mergers and acquisitions division focusing on the business services sector. Aiming to significantly enhance its fee revenue, the recruitment is part of a plan to transform the department dramatically, according to a bank executive speaking to Reuters.

John Richert, who heads JPMorgan's mid-cap investment banking, anticipates increasing the business services group's revenue to $500 million within three to five years. This growth strategy involves multiplying the senior headcount by five within two to three years, following what Richert refers to as 'the power of fives.' He conveyed his ambitions while holding back on specifics regarding managing directors.

The sector, employing 22.5 million in the U.S., is gaining from consolidation as companies outsource non-core tasks to efficiency-improving services like HVAC and janitorial work. With private equity's substantial liquidity, reaching $310 billion last quarter, JPMorgan intends to leverage its extensive network of mid-cap companies to fuel M&A deals and capitalize on a sector largely safe from tariffs and AI disruption.