Barclays Sets Aside Balance Sheet Cash for Private Debt Push
- Investment bank looks to compete with direct lending funds
- Strategy will rely on balance sheet cash to purchase loans
The Barclays Plc headquarters in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Barclays Plc has earmarked cash from its balance sheet to hold corporate loans and compete directly with private credit funds, according to people with knowledge of the matter, as more banks look for ways to gain a foothold in the $1.5 trillion market for private debt.
The strategy, which Barclays plans to grow into the billions of US dollars, involves purchasing slugs of debt originated by the bank and participating in new financing arranged by direct lending funds, said the people, who asked not to be named discussing confidential information. It is led by Emily Knickel, the bank’s New York-based head of principal investing.