Citi strikes €15bn partnership with BlackRock for private European lending

1. 1. Citigroup and BlackRock's HPS Investment Partners have formed a €15 billion private lending partnership targeting European companies and leveraged buyouts.
2. 2. This partnership is part of Citi's broader strategy to bolster its investment banking franchise through private lending, following a similar $25 billion deal with Apollo Global Management in 2024.
3. 3. Post-crisis regulations have significantly pushed trillions of dollars in lending away from banks towards private investment groups not backstopped by the Federal Reserve.
4. 4. The collaboration allows Citi to meet client demand for tailored private credit solutions while providing BlackRock HPS with access to Citi's extensive network for sourcing deals.
5. 5. An earlier partnership with Apollo Global Management helped Citi facilitate the financing for Thoma Bravo's $10.6 billion acquisition of Boeing's Jeppesen digital aviation unit.
6. 6. Despite its growth, the private credit sector faces intense scrutiny over the quality of its loans and has seen a surge in redemption requests from retail-focused funds.
7. 7. BlackRock's participation in this deal aligns with CEO Larry Fink's strategy to expand its presence in fast-growing private markets.