JPMorgan Boosts Business Services M&A Team with Strategic Hires

Post by : Bianca Suleiman

In a strategic initiative to enhance its position in the flourishing business services sector, JPMorgan Chase & Co has onboarded three senior investment bankers from Deutsche Bank and Goldman Sachs. This decision is part of a broader strategy aimed at significantly increasing fee revenue within a segment that remains largely unaffected by AI advancements and global tariffs.

John Richert, who leads JPMorgan’s mid-cap investment banking, disclosed plans to increase the business services group’s revenue to $500 million over the next three to five years. “My goal is to expand senior-level staffing fivefold within the next two to three years. I refer to it as the power of fives,” he stated.

The business services industry in the U.S. accounts for over 22.5 million jobs, encompassing a range of professions from electricians and plumbers to office catering and cleaning services. Historically driven by smaller enterprises, the sector is witnessing consolidation as firms outsource non-core functions like HVAC maintenance, landscaping, and facility management to enhance operational efficiency and reduce expenses.

Private equity is driving this wave of mergers and acquisitions, with cash availability skyrocketing to a record $310 billion in the third quarter. Investors are keen to amalgamate smaller, regional businesses into larger platforms that ensure stable, recurring income. JPMorgan intends to leverage its relationships with 11,000 mid-cap enterprises within its commercial banking framework to stimulate deal activity.

The new arrivals bring a wealth of experience:

• Erik Carneal steps in as vice chair following a 14-year tenure at Deutsche Bank, where he advised on transactions in professional, educational, and commercial services. With over 25 years in investment banking, he will provide mentorship to junior professionals.

• David Sweet, previously the head of commercial and residential services at Deutsche Bank, assumes the role of managing director, focusing on mid- and large-cap clientele. He offers nearly two decades of industry-specific knowledge.

• Ye Xia, an executive director from Goldman Sachs, will broaden coverage in industrial and commercial services, alongside digital infrastructure and professional services. Xia has also held prominent roles at Guggenheim and Rothschild & Co.

All three bankers will operate from New York and report directly to Richert. Dana Weinstein oversees business services at present, and Richert is on track to become the global head of business services investment banking coverage following her retirement next year.

This targeted recruitment showcases JPMorgan’s ambition to replicate the remarkable growth seen in its Mid-Cap IB division, which expanded from 30 bankers generating $150 million in revenue to 250 bankers with over $1 billion in annual earnings within just seven years. The bank is positioning itself as the preferred partner for private equity and mid-cap companies navigating the landscape of consolidation in business services, indicating a robust push in an industry poised for sustained growth.