Dubai: US banking giant Citigroup and BlackRock’s HPS Investment Partners have partnered on a €15 billion ($17.5 billion) private credit programme to expand direct lending across the EMEA region, the companies said on Monday.
Under the partnership, Citi will leverage its capabilities to source investment opportunities for the programme, which will target borrowers with operations in Continental Europe, the UK and, eventually, the Middle East.
The tie-up with HPS is aimed at meeting growing demand from Citi’s corporate and sponsor clients for tailored private credit solutions, said John McAuley, Citi’s Co-Head of Debt Capital Markets.
The programme will focus on financing opportunities across a broad range of sub-investment grade debt instruments in EMEA over an initial five-year term.
The collaboration highlights the deepening alliance between banks and investment firms seeking to expand their presence in the multi-trillion-dollar private credit market, which has faced heightened scrutiny in recent months amid negative headlines.
Despite this scrutiny, institutional investors continue to show renewed interest in direct lending—one of the most closely examined segments of private credit.
The announcement follows Citi’s earlier partnership with Apollo Global in 2024, which established a $25 billion private credit and direct lending programme.