(20 February 2026 – Global) Bank of America has earmarked US$25bn for private credit lending, positioning itself more aggressively against non-bank competitors at a time when scrutiny of credit quality and liquidity in the sector is intensifying.
Announcing the move internally, Bruce Thompson, vice-chair and head of enterprise credit, said: “This commitment further strengthens our ability to meet the evolving needs of our corporate and private equity clients and to drive strong returns for our shareholders.”
The expansion comes amid heightened concerns over private loan performance, following a series of prominent defaults and growing unease around private capital exposure to software companies facing potential AI-related disruption. This week, private credit manager Blue Owl said it would permanently limit investor withdrawals from its first private retail debt fund, adding to debate around liquidity resilience in the asset class.
BofA’s strategy mirrors similar initiatives across Wall Street. JPMorgan Chase previously outlined plans to allocate US$50bn to higher-risk, private equity-backed borrowers as part of its broader credit push. Meanwhile, Citigroup and Wells Fargo have partnered with asset managers Apollo Global Management and Centerbridge Partners respectively to expand their footprint, while Goldman Sachs and Morgan Stanley are deploying capital through in-house wealth and asset management vehicles.
Alongside the capital commitment, Bank of America has made senior leadership appointments to support the build-out. Anand Melvani has been named head of private credit within the bank’s global capital markets division, in addition to retaining his responsibilities as head of Americas leveraged finance. Scott Wiate will lead private credit structuring and underwriting, reporting to Thompson.