JPMorgan Strengthens M&A Team Amid Business Services Growth

In a strategic enhancement of its business services division, JPMorgan Chase & Co has onboarded three seasoned investment bankers from Deutsche Bank and Goldman Sachs. This move aims to capture a larger slice of the expanding business services market, which remains relatively secure against AI advancements and global tariffs.

John Richert, head of mid-cap investment banking at JPMorgan, stated plans to quintuple revenue within the business services group to $500 million over the next three to five years. “I’d like to expand our senior team by five times in two to three years—what I call the power of fives,” he expressed.

The U.S. business services sector employs over 22.5 million individuals and encompasses everything from electricians and plumbers to catering and janitorial services. While traditionally characterized by small businesses, the sector is witnessing consolidation as firms outsource non-core activities like HVAC, landscaping, and facility management to enhance efficiency and reduce costs.

Private equity is driving these mergers and acquisitions, with cash reserves hitting an unprecedented $310 billion in the third quarter. Investors are keen to consolidate small-scale and regional firms into streamlined entities offering stable, recurring revenue. JPMorgan plans to harness connections with 11,000 mid-cap companies in its commercial banking portfolio to generate deal opportunities.

The new team members bring considerable expertise:

• Erik Carneal joins as vice chair after a prominent 14-year tenure at Deutsche Bank, focusing on deals in professional services, education, and commercial sectors. He has over 25 years in investment banking and will serve as a mentor to junior talent.

• David Sweet, who previously led commercial and residential services at Deutsche Bank, steps in as managing director to concentrate on mid- and large-cap clients. He offers nearly two decades of industry experience.

• Ye Xia, a former executive director at Goldman Sachs, will broaden coverage to include industrial and commercial services, digital infrastructure, and professional offerings. Xia has also worked with Guggenheim and Rothschild & Co.

All three executives will operate from New York and report directly to Richert. As Dana Weinstein currently oversees business services, Richert is expected to take on the role of global head of business services investment banking following her retirement next year.

This strategic recruitment showcases JPMorgan’s ambition to mirror the success of its Mid-Cap IB division, which expanded from 30 bankers generating $150 million to 250 bankers earning over $1 billion annually within seven years. The bank is establishing itself as the preferred partner for private equity and mid-cap firms navigating the consolidation landscape in business services, indicating a strong commitment to a sector set for long-lasting growth.