Citi, BlackRock HPS Forge €15 Billion Direct-Lending Tie-Up Across Europe and Middle East
Updated
Updated · Bloomberg · May 20
Citi, BlackRock HPS Forge €15 Billion Direct-Lending Tie-Up Across Europe and Middle East
8 articles · Updated · Bloomberg · May 20
Citi and BlackRock HPS have formalized a transatlantic direct-lending partnership centered on a €15 billion private capital program running over an initial five years.
The tie-up will finance sub-investment-grade debt for corporate and sponsor-backed borrowers in continental Europe, the UK and the Middle East, pairing Citi’s origination reach with HPS’s private-credit capital.
The firms are offering both senior and junior credit structures, aiming to meet rising demand for tailored financing as more borrowers turn to private markets instead of public debt channels.
The deal extends Wall Street’s push into Europe’s direct-lending market and underscores how bank-asset manager alliances are reshaping private credit on both sides of the Atlantic.
With AI shaking software debt, is Citi's new €15 billion fund a bold move or a grave miscalculation?
As defaults rise, is this bank-fund partnership a growth engine or a new way to hide systemic risk?