JM Financial is increasingly betting on private markets as a key driver of future growth and profitability, according to Vishal Kampani, Managing Director of the group. As traditional capital market businesses face cyclical pressures, private credit and private equity are emerging as more stable and scalable revenue streams.
Shift Beyond Traditional Capital Markets
Kampani highlighted that while businesses such as equity capital markets and brokerage remain important, they are inherently cyclical. In contrast, private markets offer longer-term visibility, recurring income and stronger client stickiness, making them an attractive strategic focus for the firm.
JM Financial has been steadily expanding its presence in private credit, structured finance and alternative investments, catering to corporates that are increasingly looking beyond banks for funding solutions.
Rising Demand for Private Credit
The demand for private credit in India has grown significantly as companies seek flexible financing options and faster execution. Regulatory constraints on banks and the need for customised capital solutions have created opportunities for non-bank financial players like JM Financial.
According to Kampani, this shift has helped the firm build a diversified lending and investment platform, reducing dependence on volatile market-linked revenues.
Long-Term Opportunity in Alternatives
Private equity, structured products and alternative asset management are expected to play a larger role in JM Financial’s future earnings mix. These segments not only offer higher margins but also allow deeper engagement with clients over longer investment horizons.
The firm believes that India’s growing entrepreneurial ecosystem, expanding mid-market companies and increased institutional participation will continue to support strong growth in private markets.
Outlook
JM Financial plans to continue investing in talent, risk management and capital to scale its private markets platform. While public market activity will remain important, the group sees private markets as a sustainable profit engine capable of delivering consistent returns across market cycles.
