Banks Rush to Gain Foothold in $1.5 Trillion Private Credit Market

Banks are increasingly muscling in on the $1.5 trillion private credit market in a move that further blurs the lines between private-lending funds and their traditional banking rivals.

Barclays Plc , Societe Generale SA and Deutsche Bank AG have all made concerted efforts to grab a slice of the lucrative corner of leveraged finance.

Private debt has become an increasingly sought-after funding tool for buyout firms.

Barings has launched an evergreen fund focused on direct lending in Europe that will offer investors greater liquidity than a typical closed-end fund.

Abu Dhabi wealth fund Mubadala Investment Co. has formed a strategic partnership with Blue Owl Capital Inc. , committing $1 billion to the firm’s credit platform.

Brookfield Asset Management Ltd. and Societe Generale SA plan to raise as much as 10 billion for a “high-quality” private debt fund.