Citigroup Inc. and HPS Investment Partners, a part of BlackRock, have announced a €15 billion Private Capital Program aimed at expanding direct lending across the Europe, Middle East, and Africa (EMEA) region. The initiative is designed to provide flexible financing solutions for corporate and private equity–backed borrowers, particularly those operating in Continental Europe, the United Kingdom, and eventually the Middle East. (businesswire.com)
The program targets approximately €15 billion in debt financing opportunities over an initial five-year period. It will focus on a wide range of sub-investment grade debt instruments, reflecting growing demand for alternative lending solutions outside traditional banking channels. Citi will play a key role in sourcing deals through its investment, corporate, and commercial banking networks, while HPS will provide capital and structuring expertise.
A major objective of the partnership is to meet rising demand from corporate clients and sponsors seeking tailored private credit solutions. The collaboration combines Citi’s global client relationships and origination capabilities with HPS’s investment platform, aiming to deliver more efficient and scalable financing options across the region.
The initiative also reflects the broader expansion of private credit markets, where banks and asset managers are increasingly forming partnerships to compete with non-bank lenders. These structures allow banks to extend their lending reach while leveraging institutional capital from private credit firms.
The program is expected to gradually extend beyond Europe and the UK into the Middle East, further expanding the geographic scope of private lending activity. It highlights the continued convergence between traditional banking and private credit markets as global demand for flexible corporate financing continues to grow.
