JPMorgan Chase has submitted a registration filing with the U.S. Securities and Exchange Commission for a new private credit vehicle that, according to a prospectus dated Wednesday, would allow investors to redeem 7.5% of shares each quarter. The document also says the firm has sought an exemption from the regulator enabling it to repurchase at least 2% of outstanding shares on a monthly basis.
The filing describes the fund - named JPMorgan Public and Private Credit Fund - as one that would normally invest a minimum of 80% of its net assets, together with any borrowings used for investment purposes, in credit instruments. That allocation threshold is presented as a typical policy for the vehicle.
The fund’s stated repurchase policy allows for quarterly repurchases of between 5% and 25% of outstanding shares. While the policy sets that broader range, the prospectus notes the fund currently "expects" to repurchase 7.5% of shares each quarter, mirroring the explicit redemption allowance for investors.
JPMorgan’s filing comes at a time of visible stress across the private credit market. The prospectus was filed as the roughly $2-trillion private credit industry has seen increasing investor concern over lending standards and concentrated exposures to the software sector, developments that have triggered waves of redemption requests and forced some managers to impose limits on withdrawals.
Earlier this week, Ares Management capped investor withdrawals at one of its private credit funds after a surge in redemption requests. That step places Ares among other alternative asset managers, including Apollo Global and BlackRock, that have recently limited redemptions at certain private credit vehicles.
This filing documents JPMorgan’s proposed operational mechanics for a fund intended to balance investor redemptions and manager repurchases within specified limits, while allocating a large majority of assets to credit investments. The prospectus provides the exemption request and the repurchase expectations as part of the fund’s governance and liquidity framework.