Barclays is planning a push into the $1.5tn private debt market and has allocated cash from its balance sheet to hold corporate loans and allow it to compete directly with private credit funds, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the matter as confirming that the strategy led by Emily Knickel, the bank’s New York-based head of principal investing, and which Barclays plans to grow into the billions of US dollars, involves purchasing tranches of debt originated by the bank and participating in new financing arranged by direct lending funds.
Barclays has reportedly been plotting a move into private credit for at least a year in response to the success of asset managers including Ares Management Corp and Blackstone Inc in providing financing for multi-billion dollar deals.
