Citigroup and HPS Investment Partners, part of BlackRock, have formed a €15bn ($17.4bn) private capital programme focused on widening financing options for corporate and sponsor-backed borrowers across the region.
The programme is expected to back €15bn of debt deals in EMEA during an initial five-year period.
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HPS partner and Europe head Matthieu Boulanger commented: “We are pleased to collaborate with Citi to bring expanded direct lending solutions to the EMEA market. This collaboration will enable us to leverage Citi’s extensive network and origination pipeline in EMEA, further strengthening our ability to deliver tailored financing options to a broad range of borrowers.”
As part of the arrangement, Citi will use its origination network across its investment, corporate and commercial banking businesses to identify opportunities for the programme.
It is intended for borrowers whose main operations are in Continental Europe, the UK and, at a later stage, the Middle East.
Qualifying transactions will cover a wide range of sub-investment grade debt.
Citi debt capital markets co-head John McAuley said: “To meet the increasing demand from our corporate and sponsor clients for tailored private credit solutions, we are excited to announce this collaboration with HPS, a part of BlackRock.
“This programme is designed to directly support our clients’ strategic objectives across the EMEA region by combining Citi’s deep client relationships and origination strength with their significant capital and structuring expertise. Together, we are creating a best-in-class offering to help our clients achieve their goals.”
In September last year, Citi Wealth agreed with BlackRock on the management of about $80bn in assets for its wealth clients.
Citi and BlackRock also previously launched ‘Citi Portfolio Solutions powered by BlackRock’.
That offering brings together Citi Wealth’s advisory operation with BlackRock’s investment and technology capabilities.
