JPMorgan Raids Deutsche, Goldman for Top Investment Banking Talent

JPMorgan Chase & Co. is making bold moves to grow its investment banking business by hiring top talent from its biggest rivals, Deutsche Bank and Goldman Sachs. The bank recently brought in three senior bankers as part of its plan to expand its business services division, which focuses on companies providing essential services such as cleaning, maintenance, and infrastructure support.

The new recruits are part of a larger strategy led by John Richert, the head of JPMorgan’s mid-cap investment banking group. Richert plans to increase the division’s revenue fivefold to reach about 500 million dollars over the next three to five years. He also hopes to grow the number of senior-level bankers by the same rate within the next two to three years. He calls this ambitious approach the “power of fives.”

The business services sector is one of the largest in the United States, employing over 22 million people. It includes a wide range of jobs, from electricians and plumbers to landscapers and janitorial workers. The industry is going through major changes as companies increasingly outsource non-core functions like maintenance and catering to save costs and improve efficiency.

According to Richert, this sector is also one of the safest from automation and global trade challenges. While artificial intelligence and tariffs threaten many industries, the need for human labor in areas such as cleaning, restoration, and repair remains constant. “Even if a clothing manufacturer is affected by tariffs, someone still has to clean the factory,” he explained.

JPMorgan also plans to take advantage of a surge in private equity investments in the business services sector. Private equity firms recently hit a record of 310 billion dollars in quarterly deal value. Many of these investors are targeting small service companies, buying and merging them into larger, more profitable platforms that can generate stable revenue. Richert noted that private equity interest in areas like HVAC, landscaping, and restoration has never been stronger.

The bank’s recent hires bring extensive experience and industry knowledge. Erik Carneal, who joins as vice chair after 14 years at Deutsche Bank, will mentor younger bankers and help build client relationships. David Sweet, formerly head of commercial and residential services coverage at Deutsche Bank, joins as managing director. Ye Xia, previously with Goldman Sachs, becomes executive director overseeing industrial and digital infrastructure services. All three will work from New York under Richert’s leadership.

As part of a leadership transition, Richert will take over as global head of business services investment banking next year when Dana Weinstein, the current head, retires. With its deep client network and aggressive hiring strategy, JPMorgan is positioning itself to become a dominant force in one of the most resilient areas of the economy.

It remains to be seen how other players like B. Riley Financial Inc. (NASDAQ: RILY) in the investment banking space are repositioning themselves for sustained growth in the wake of increasing automation and AI adoption.

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