(Reuters) - Lender Morgan Stanley is discussing allocating a portion of its balance sheet into a new private credit fund that would include capital from external investors, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.
The New York-based firm has held preliminary talks about injecting $1 billion to $2 billion of capital into the new vehicle, according to the report.
Morgan Stanley did not immediately respond to a Reuters' request for comment.
Earlier this year, JPMorgan Chase & Co (NYSE:JPM) set aside at least $10 billion to back its foray into the world of direct lending.