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Citi to launch new private credit strategy in January 2024

Citigroup is the latest bank targeting a slice of the booming $1.6tn private credit market with plans to launch a new direct-lending strategy in the first few weeks of next year, according to a report by Bloomberg.

The report cites a person with knowledge of the matter as saying that the initiative would complement the bank’s existing broadly syndicated leveraged finance business and could involve teaming up with one or more outside partners that would provide capital for loans, which the bank would originate.

Citigroup wants to be able to offer potential borrowers, or their private equity owners, the choice of high-yield bonds, leveraged loans, or a private credit option.

Discussions are reportedly ongoing and details could still change with Citigroup as yet undecided on whether or not to use its balance sheet to win private credit deals.

The move follows similar private debt initiatives by other banks this year including Wells Fargo & Co, Barclays Plc and Societe General.

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