(Bloomberg) -- Macquarie Group Ltd. is shuttering its US debt capital markets arm, a business that includes leveraged loan origination, syndication and trading, to focus resources on private credit, according to people with knowledge of the matter.

The decision is set to impact roughly 80 staff within the firm’s investment banking arm, known as Macquarie Capital, said the people, who asked not to be identified discussing confidential information. Some employees will be moved into other roles at the firm, while others will leave, they said.

The change was communicated on Wednesday morning during a town hall meeting, said the people. Macquarie plans to sell positions it amassed through US debt capital markets activities over the next two years, which will create more balance sheet capacity for private credit, among other uses, the people added.

A Macquarie representative declined to comment.

In the US, Macquarie Capital largely focused on leveraged finance origination and distribution as well as credit sales and trading. The firm shut its European debt capital markets efforts last year. Its committed private credit portfolio was more than A$22.5 billion ($14.1 billion) as of Sept. 30, according to its interim report.

The rapid growth of the private credit market, dominated by alternative asset firms, has reshaped large swaths of Wall Street, forcing investment banks to rethink parts of their business, leading to some private lender partnerships and triggering a wave of consolidation among asset managers.

Macquarie’s private credit activity includes extending senior, junior and structured loans to corporate borrowers as well as real estate debt, its website shows. Its portfolio has focused on sectors including technology, media and telecommunications, and financial institutions such as insurance brokers, according to a 2023 presentation.