Key Takeaways
- • Citigroup and BlackRock's HPS Investment Partners have established a €15 billion ($17.5 billion) private credit partnership focused on direct lending to companies and leveraged buyout sponsors across Continental Europe, the Middle East, and Africa (EMEA).
- • The collaboration leverages Citi's extensive origination network and client relationships in the EMEA region combined with HPS's private credit expertise, positioning both institutions to capture greater market share in the competitive European direct lending space.
- • HPS, acquired by BlackRock in July 2025, will utilize this joint venture to access a broader origination pipeline and expand its debt financing capabilities across the EMEA region beyond its previous reach.
- • The €15 billion facility is specifically designed to finance borrowers whose primary operations are in Continental Europe, addressing a key segment of the mid-market to large-cap private credit market that has experienced significant growth.
- • This partnership reflects the continued consolidation and strategic alignment in the alternative credit industry, as major asset managers and financial institutions combine capabilities to meet growing institutional demand for private debt solutions.
Summary
Citigroup has announced a strategic partnership with HPS Investment Partners, BlackRock's private credit platform acquired in July 2025, to launch a €15 billion ($17.5 billion) direct lending program focused on the EMEA region. The collaboration represents a significant expansion of both institutions' capabilities in the European private credit market, combining Citi's extensive client network and origination infrastructure with HPS's specialized expertise in structured private debt.
The facility is explicitly designed to provide financing solutions to companies and private equity sponsors conducting leveraged buyout activity, with a primary focus on borrowers whose main operations are based in Continental Europe. According to multiple sources, the partnership will enable both organizations to leverage Citi's established relationships and dealflow pipeline across the EMEA region, while allowing HPS to significantly broaden its direct lending reach beyond its previous geographic and sectoral scope.
The timing of this partnership is strategically significant, coming approximately ten months after BlackRock's acquisition of HPS in July 2025. By combining BlackRock's capital resources and distribution capabilities with Citi's on-the-ground banking relationships and transaction origination expertise, the joint venture positions both parties to compete more effectively in an increasingly crowded private credit market. The €15 billion commitment underscores the substantial capital available for European private credit and reflects strong institutional demand for alternative lending solutions in a period of persistent economic uncertainty.
This arrangement exemplifies the broader trend in alternative asset management where large financial institutions pursue strategic partnerships to consolidate market position, reduce distribution costs, and access complementary capabilities. For institutional investors and fund managers, the partnership signals the continued integration of traditional banking infrastructure with specialized alternative credit expertise—a dynamic that is reshaping competitive dynamics and deal sourcing in European leveraged finance.
The facility is explicitly designed to provide financing solutions to companies and private equity sponsors conducting leveraged buyout activity, with a primary focus on borrowers whose main operations are based in Continental Europe. According to multiple sources, the partnership will enable both organizations to leverage Citi's established relationships and dealflow pipeline across the EMEA region, while allowing HPS to significantly broaden its direct lending reach beyond its previous geographic and sectoral scope.
The timing of this partnership is strategically significant, coming approximately ten months after BlackRock's acquisition of HPS in July 2025. By combining BlackRock's capital resources and distribution capabilities with Citi's on-the-ground banking relationships and transaction origination expertise, the joint venture positions both parties to compete more effectively in an increasingly crowded private credit market. The €15 billion commitment underscores the substantial capital available for European private credit and reflects strong institutional demand for alternative lending solutions in a period of persistent economic uncertainty.
This arrangement exemplifies the broader trend in alternative asset management where large financial institutions pursue strategic partnerships to consolidate market position, reduce distribution costs, and access complementary capabilities. For institutional investors and fund managers, the partnership signals the continued integration of traditional banking infrastructure with specialized alternative credit expertise—a dynamic that is reshaping competitive dynamics and deal sourcing in European leveraged finance.
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