Overview
- Citigroup and HPS Investment Partners unveiled a €15 billion program that will finance private loans over an initial five-year term across Europe, the Middle East and Africa.
- The companies said Citi will source and originate deals, while HPS provides the capital to fund the loans, focusing on sub-investment-grade borrowers outside public markets.
- Target clients include corporate and sponsor-backed firms in Continental Europe and the UK, with plans to extend to the Middle East after the initial rollout.
- Citi’s John McAuley said the tie-up responds to growing requests from corporate and private equity clients for tailored private credit solutions.
- The move fits a wider shift in which banks keep client relationships and fee income as asset managers supply lending capital, following Citi’s 2024 $25 billion private credit partnership with Apollo.