Bank of America (BAC) is putting up $25B of its cash for private credit deals, following other Wall Street peers that are tapping their balance sheets to lend to the fast-growing market, according to a media report.
The bank will put its own capital into private credit opportunities, expanding its existing direct-lending business, Bloomberg News reported, citing people familiar with the matter. Bank of America (BAC) expects to originate the deals from its capital markets unit, part of its investment banking division, they said.
The company named Anand Melvani as head of private credit within the capital markets unit, according to a memo that Bloomberg has reviewed. Melvani, who has been at BofA for over 30 years, will also keep his role as head of Americas leveraged finance.
According to a separate memo cited by Bloomberg, Scott Wiate will be head of private credit, structuring, and underwriting. He was most recently head of enterprise credit risk for global leveraged finance, global credit, and municipal banking and markets.