BofA Commits $25 Billion of Its Own Cash to Private Credit Deals

Bank of America Corp. is committing $25 billion to private-credit deals, joining its Wall Street rivals in putting its own balance sheet behind lending in the fast-growing market, according to people with knowledge of the matter.

The company will invest its own capital in private-credit opportunities, an extension of the firm’s existing direct-lending efforts, said the people, who asked not to be identified discussing private information. The bank plans to originate the deals from its capital-markets division, which is part of its investment-banking business, the people said.

Bank of America named new leaders for the private-credit initiative. The firm ...