JPMorgan accelerates push into commercial HVAC, related services

JPMorgan is pushing deeper into the business services sector, including the HVAC, plumbing, and electrical industries, Reuters reported. 

What’s happening: John Richert, JPMorgan’s head of mid-cap investment banking, told the outlet that he’s aiming to quintuple the revenue of the firm’s business services group over the next five years, while increasing headcount at the same pace. JPMorgan has already poached three top bankers from competing investment banks as part of the effort. 

Why it matters: The move reflects investors’ strong appetite for the skilled trades and related industries, as they see continued opportunity to consolidate both mom-and-pop and regional players. 

What they’re saying: “We have a number of private equity meetings per week in which investors are asking to show them everything we have in HVAC, everything we have in restoration, in landscaping,” Richert said.

• The bank is bullish on businesses that are largely insulated from tariffs and AI-driven job displacement. “Even if you are a clothing manufacturer impacted by tariffs, somebody still has to clean that facility at night,” he added. 

Zoom in: JPMorgan plans to leverage its relationships with the 11,000 mid-cap companies served by its commercial banking arm to drive deal activity, Reuters noted. 

By the numbers: U.S. private equity firms announced 156 deals in the third quarter, valued at an all-time quarterly high of $310 billion, according to a recent EY report.