Key Takeaways
- • Citigroup and HPS Investment Partners (BlackRock's alternative asset management subsidiary) have launched a €15 billion private capital programme targeting debt financing across Continental Europe and the UK over a five-year period, with potential expansion into the Middle East.
- • The programme will finance a broad range of sub-investment grade debt instruments for corporate and sponsor clients, leveraging Citi's origination capabilities across investment, corporate, and commercial banking channels.
- • This partnership brings Citi's EMEA (Europe, Middle East, and Africa) private lending capacity into strategic parity with its US operations, which gained significant scale through a $25 billion private credit direct lending programme launched with Apollo in 2024.
- • Citi will source investment opportunities while HPS Investment Partners will deploy capital as the debt provider, creating a complementary model that combines Citi's deal origination infrastructure with HPS's capital deployment capabilities.
Summary
Citigroup has formalized a strategic partnership with HPS Investment Partners, the alternative investment management arm of BlackRock, to establish a €15 billion private capital programme focused on expanding direct lending across the EMEA region. The five-year initiative targets corporate and sponsor-backed borrowers in Continental Europe and the UK, with plans to extend eligible geographies to the Middle East at an unspecified future date.
The programme capitalizes on structural demand for customized private credit solutions from institutional borrowers. Under the arrangement, Citi will leverage its extensive investment banking, corporate banking, and commercial banking origination capabilities to identify and source eligible debt opportunities. HPS Investment Partners will assume the capital deployment role, financing qualifying opportunities across a spectrum of sub-investment grade debt instruments. This complementary structure allows Citi to monetize its origination platform while providing HPS with a curated deal pipeline from a Tier-1 financial institution.
The €15 billion commitment represents a meaningful expansion of Citi's private credit footprint in Europe and Africa. The partnership directly mirrors Citi's successful 2024 collaboration with alternative asset manager Apollo, which established a $25 billion private credit direct lending programme serving US corporate and sponsor clients. This new EMEA programme effectively positions Citi's regional private lending scale on equivalent footing with its established US capabilities.
The transaction reflects a broader institutional trend toward non-traditional capital sources and private credit solutions as corporate borrowers seek alternatives to traditional bank lending and public debt markets. For institutional investors and fund managers, the Citi-HPS programme signals sustained appetite among Tier-1 financial institutions and mega-asset managers for scaled, institutionalized private credit platforms serving mid-market and leveraged buyout financing needs across developed markets.
The programme capitalizes on structural demand for customized private credit solutions from institutional borrowers. Under the arrangement, Citi will leverage its extensive investment banking, corporate banking, and commercial banking origination capabilities to identify and source eligible debt opportunities. HPS Investment Partners will assume the capital deployment role, financing qualifying opportunities across a spectrum of sub-investment grade debt instruments. This complementary structure allows Citi to monetize its origination platform while providing HPS with a curated deal pipeline from a Tier-1 financial institution.
The €15 billion commitment represents a meaningful expansion of Citi's private credit footprint in Europe and Africa. The partnership directly mirrors Citi's successful 2024 collaboration with alternative asset manager Apollo, which established a $25 billion private credit direct lending programme serving US corporate and sponsor clients. This new EMEA programme effectively positions Citi's regional private lending scale on equivalent footing with its established US capabilities.
The transaction reflects a broader institutional trend toward non-traditional capital sources and private credit solutions as corporate borrowers seek alternatives to traditional bank lending and public debt markets. For institutional investors and fund managers, the Citi-HPS programme signals sustained appetite among Tier-1 financial institutions and mega-asset managers for scaled, institutionalized private credit platforms serving mid-market and leveraged buyout financing needs across developed markets.
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