WeWork And JPMorgan’s Relationship To Be Solidified During IPO
WeWork CEO Adam Neumann has had a long-running relationship with JPMorgan Chase’s Jamie Dimon. A JPMorgan fund bought a stake in the coworking firm five years ago, and since then, the bank has provided more financial aid than any other lender.
Now, JPMorgan will contribute $800 million of WeWork’s $6 billion package of debt financing contingent upon the firm raising $3 billion in its IPO next month. The bank will also lead the IPO.
A fund within JPMorgan Asset Management revealed that a stake into WeWork has multiplied since its founding to surpass $600 million.
If the listing is successful, it could show JPMorgan is gaining momentum after leading Lyft’s IPO earlier this year.
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Goldman Sachs, arguably the top dog of New York investors, also has an established relationship with WeWork. Goldman acquired a stake during WeWork’s venture-funding rounds and is reportedly expected to help lead JPMorgan in the IPO.
“If WeWork is a complete nightmare, I think Morgan Stanley, Goldman Sachs and JPMorgan are still going to be here in six months chasing the big IPOs and getting hired for them anyway,” said Adam Augusiak-Boro, an EquityZen analyst.
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