Banks Turn to Private Credit to Finance Novacap's Integral Ad Science Acquisition

Wall Street banks are using private credit to finance Novacap's acquisition of Integral Ad Science. RBC Capital Markets is leading the effort to raise approximately $1 billion, but an approach to leveraged loan investors was unsuccessful due to concerns about the impact of AI technology on digital advertising. The acquisition is expected to close by the end of the year, and if the banks cannot move the debt off their balance sheets, they will be left with "hung debt."