Post by : Badri Ariffin

In a bold move to capture more of the booming business services sector, JPMorgan Chase & Co has hired three senior investment bankers from Deutsche Bank and Goldman Sachs. The expansion is part of a strategy to dramatically increase fee revenue in a sector largely insulated from AI disruption and global tariffs.

John Richert, JPMorgan’s head of mid-cap investment banking, revealed ambitions to quintuple the business services group’s revenue to $500 million over the next three to five years. “I’d like to increase headcount at the senior level by five times in the next two to three years. I call it the power of fives,” he said.

Business services in the U.S. employ over 22.5 million people, covering everything from electricians and plumbers to office catering and janitorial services. Traditionally dominated by small businesses, the sector is seeing consolidation as companies outsource non-core operations such as HVAC, landscaping, and facility management to improve efficiency and cut costs.

Private equity is fueling these mergers and acquisitions, with cash availability reaching an all-time high of $310 billion in the third quarter. Investors are eager to roll up small and regional operators into scalable platforms that offer steady, recurring revenue. JPMorgan plans to leverage relationships with 11,000 mid-cap companies in its commercial banking portfolio to drive deal flow.

The new hires bring extensive experience to the table:

• Erik Carneal joins as vice chair after 14 years at Deutsche Bank, advising deals in professional, education, and commercial services. With over 25 years in investment banking, he will mentor junior bankers.

• David Sweet, formerly head of commercial and residential services at Deutsche Bank, becomes managing director focusing on mid- and large-cap clients. He brings nearly 20 years of sector expertise.

• Ye Xia, an executive director from Goldman Sachs, will expand coverage of industrial and commercial services, digital infrastructure, and professional services. Xia has also held roles at Guggenheim and Rothschild & Co.

All three bankers will be based in New York and report to Richert. Dana Weinstein currently leads business services, and Richert is set to become global head of business services investment banking coverage upon her retirement next year.

This strategic hiring reflects JPMorgan’s drive to replicate the growth of its Mid-Cap IB division, which grew from 30 bankers generating $150 million in revenue to 250 bankers earning over $1 billion annually in just seven years. The bank is positioning itself to become the go-to partner for private equity and mid-cap companies navigating consolidation in business services, signaling an aggressive push in a sector poised for long-term growth.

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