Vanguard Group has raised approximately $4bn through the private placement debt market to finance its acquisition of digital wealth management platform Altruist, according to a report by Bloomberg.

The financing was arranged by Bank of America, Citigroup and JPMorgan Chase, with debt placed directly with institutional investors, including potential buyers such as life insurers. The transaction allows Vanguard to access financing outside public bond markets, which typically involve more extensive disclosure requirements.

Vanguard, which managed approximately $13.3tn in assets as of July, announced its acquisition of Altruist in August, having first invested in the company in 2020. Altruist provides technology and custody services to independent financial advisers, enabling them to manage client portfolios and business operations through a single platform.

The transaction forms part of Vanguard's expansion into wealth management and highlights the growing role of private placement debt in financing major corporate acquisitions. Other borrowers to have accessed the market this year include the National Football League and Chick-fil-A.