JPMorgan Chase is expanding its investment banking efforts to focus more closely on small-cap companies, targeting firms valued between $100 million and $500 million. The initiative involves the formation of a dedicated team specializing in this segment, according to executives at the bank.

This new focus builds on JPMorgan’s existing middle-market investment banking unit, which serves companies with valuations ranging from approximately $500 million to $2 billion. The middle-market business has become a significant revenue driver for the bank, generating more than $1 billion annually.

By extending its reach into smaller companies, JPMorgan aims to capture additional growth opportunities in the investment banking sector. The move reflects a broader industry trend as major banks seek to diversify their deal pipelines amid changing market dynamics.

The bank’s strategy is expected to provide small-cap clients with tailored services and access to capital markets expertise traditionally available to larger companies. Industry analysts note that smaller companies have increasingly turned to investment banks for advisory work on mergers, acquisitions, and capital raising, creating potential for further expansion in this space.

JPMorgan’s decision to target the small-cap segment positions it to compete more effectively with specialized firms and regional banks that have historically dominated deals with smaller corporate clients. The approach also aligns with the bank’s overall strategy to deepen client relationships across various market tiers.

Details regarding the size of the new team and specific service offerings have not been disclosed. However, the bank’s move underscores continued confidence in the growth potential of investment banking services among companies outside the traditional large-cap market.