Banks Turn to Private Credit for Novacap’s Integral Ad Debt Deal

Wall Street banks are looking to tap private credit to help finance Novacap Investments Inc.’s acquisition of Integral Ad Science Holding Corp. after an approach to leveraged loan investors fell flat, according to people familiar with the transaction.

RBC Capital Markets is leading an effort to raise approximately $1 billion to fund the acquisition of the advertising analytics company by the Canadian private equity firm, said the people, who requested anonymity to discuss private deliberations. The investment bank held meetings with some investors to gauge interest in the syndicated loan market but couldn’t find enough lenders there amid concerns about the impact of artificial intelligence technology on digital advertising, the people said.