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JP Morgan’s Ong to lead Southeast Asia private credit business – memo

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© Reuters. FILE PHOTO: A J.P. Morgan logo is seen outside the JPMorgan bank offices in Paris, France, January 27, 2023. REUTERS/Sarah Meyssonnier/File Photo

MUMBAI (Reuters) – Reuben Ong, a senior banker at JP Morgan Chase (NYSE:), will lead its private credit financing business in Southeast Asia, an announcement seen by Reuters showed, as borrowers look for alternative financing options.

Ong has been with JP Morgan for more than 13 years and his tenure has dovetailed with the bank becoming “a top three player in Southeast Asia” debt capital markets (DCM), said the announcement, which a spokesperson confirmed on Wednesday.

Ong currently leads the firm’s Southeast Asia DCM, a role which will now be taken by Puja Shah, an executive director who has been at JP Morgan for over eight years.

Private credit is financing provided by a lender other than a bank, often into securities of unrated or lower-rated companies.

As interest rates have risen the fastest in decades, borrowers are seeking different sources of capital, even if they can be riskier for lenders seeking higher returns.

JP Morgan said Ong’s move is “building on the success of our India private credit financing offerings” amid surging client demand in Southeast Asia.

The private credit asset class is expected to be worth $2.8 trillion by 2028 according to data firm Preqin, nearly doubling from $1.5 trillion in 2022 and growing 11% year-on-year.

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