JPMorgan Chase & Co. is seeking to raise as much as $1 billion for its mezzanine fund through its asset and wealth management units, Bloomberg News reported, citing sources familiar with the subject matter.

The New York-based bank is raising money from investors for its fund, which will focus on offering financing to firms using a hybrid of equity and debt. A source further told the news outlet that the bank has already raised a significant portion of its target.

The move is part of JPMorgan's strategy of increasing its $150 billion alternatives business after witnessing increased allocations by investors in private equity, real estate and private credit offerings. Earlier this year, JPMorgan revamped the focus for its $2 billion multistrategy Highbridge fund by remodeling it into a credit-only vehicle.

A JPMorgan spokeswoman declined Bloomberg's request for comment.