Financial institution of America (BofA) has stated it’s committing $25bn (£18.6bn) to non-public credit score loans and has named Anand Melvani as head of personal credit score.
BofA joins a raft of different US banks trying to faucet into an more and more well-liked asset class.
“This dedication additional strengthens our means to fulfill the evolving wants of our company and personal fairness shoppers and to drive sturdy returns for our shareholders,” Bruce Thompson, vice-chair and head of enterprise credit score at BofA, stated in a memo despatched to workers, reported by the Monetary Occasions.
Learn extra: Personal credit score corporations and banks competing for expertise
Melvani has been appointed as head of personal credit score throughout the financial institution’s international capital markets unit and also will proceed in his position as head of Americas leveraged finance, in line with stories.
Moreover, BofA named Scott Wiate as head of personal credit score, structuring and underwriting, reporting into Thompson, one other memo despatched internally revealed.
Thompson leads a world staff liable for delivering end-to-end credit score options for the corporate’s eight traces of enterprise, in line with the BofA web site.
BofA’s transfer into the personal area comes after Goldman Sachs launched a brand new division final yr, the Capital Options Group, to capitalise on the personal credit score increase.
In the meantime, some banks have gone down the route of partnerships to realize personal credit score market share, corresponding to Citigroup’s tie-up with Apollo and Wells Fargo with Centerbridge Companions.
Current evaluation by Moody’s Scores revealed that US banks lent almost $300bn to non-public credit score suppliers as of June 2025, with total lending to non-depository monetary establishments reaching $1.2tn.
It stated the shift to non-public credit score mirrored the adoption of recent methods by US banks in response to altering market circumstances.