Carlyle Group has formed a strategic partnership with Citigroup to provide asset-backed financing solutions to fintech lenders, as private credit demand from digital lending platforms continues to surge, according to a report by Reuters.
The collaboration, announced on Thursday, will see the two financial giants share market intelligence and jointly explore co-investment and financing opportunities. The deal aims to support the growth of fintech lenders by offering scalable and bespoke capital solutions backed by loan portfolios and other receivables.
“Demand for scalable and tailored asset-backed financing solutions from fintech lenders has increased as they mature and seek efficient ways to fund their growth,” said Akhil Bansal, Head of Asset-Backed Finance at Carlyle.
Asset-backed finance, which uses pools of underlying assets as collateral, is one of the most rapidly expanding areas within private credit. The Carlyle-Citi partnership adds to Citi’s growing private credit exposure, which already includes a $25bn lending joint venture with Apollo Global Management.
