Citigroup and BlackRock’s private credit arm HPS Investment Partners have agreed a new partnership aimed at originating up to €15bn of private credit financings across Europe over the next five years, according to a report by Bloomberg.
The initiative, named the Citi/HPS Private Capital Program, will focus on providing sub-investment grade financing solutions to corporate borrowers and private equity-backed companies across continental Europe and the UK. The collaboration is expected to cover both senior and junior debt structures, with plans to later extend the platform into the Middle East.
Under the arrangement, Citigroup will originate and structure transactions using its investment banking network and client relationships, while HPS will provide the capital and lead credit underwriting decisions.
John McAuley, Citigroup’s co-head of global debt capital markets, said the partnership combines the bank’s sourcing and structuring capabilities with HPS’ scale in direct lending to assess and execute financing opportunities jointly.
The agreement reflects the increasing alignment between traditional investment banks and private credit managers as both sectors adapt to changing market dynamics. Banks are seeking ways to maintain lending-related revenues while limiting pressure on balance sheets amid tighter capital requirements, while private credit firms continue to look for larger pools of deployable deal flow.
The European initiative expands on a strategy Citigroup first introduced in the US in 2024 through its partnership with Apollo Global Management. That collaboration has since supported several financings, including funding tied to Boeing’s sale of its Jeppesen navigation business.
HPS, one of the largest players in the global private credit market, was acquired by BlackRock in 2025 in a deal valued at approximately $12bn.
