Royal Bank of Canada (RBC) is set to give its affluent customers access to the highly sought after private-credit market, Bloomberg has reported.
The Canadian financial services company is negotiating with various fund managers including Brookfield Oaktree Wealth Solutions and Blue Owl Capital to offer this service, undisclosed sources told the publication.
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If the talks materialise, RBS will be able to give its wealthy clients access to hard-to-trade corporate debt, which usually yield higher returns than normal bonds.
A source familiar with the development told the publication that RBC will immediately deploy funds money raised from clients instead of committing to future investment.
The Canadian lender may begin offering such funds to clients as early as this year, the report added.
Spokespersons of RBC, Blue Owl and Brookfield Oaktree parent Brookfield Asset Management refused to offer any comment on the report.
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By GlobalDataThe report added that the Canadian bank is keen on asset managers offering share classes of funds denominated in Canadian dollars.
According to a EY report, private credit now accounts for about 12% of global private capital assets under management. Over the last 11 years, private credit has posted an annual growth in AUM of approximately 10%.
The move by RBC follows Blue Owl’s announcement in January this year that it would give accredited investors in Canada access to a lending business-development company.
