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Carlyle Announces Partnership With Citigroup on Asset-Backed Lending

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Key Takeaways

  • Carlyle will collaborate with Citigroup to grow asset-backed finance in fintech specialty lending.
  • The partnership unites Carlyle's investment reach with Citigroup's SPRINT fintech expertise.
  • Both firms will share market insights and co-invest to meet the rising fintech lender funding demand.

Carlyle Group Inc. (CG - Free Report) has announced a collaboration with Citigroup Inc. (C - Free Report) to expand asset-backed financing opportunities within the fintech specialty lending space.

Details of the Partnership Between Carlyle and Citigroup

Both companies have formalized a framework to exchange market intelligence and explore co-investment and financing opportunities to align strategic objectives and deepen integration. The collaboration will integrate Carlyle’s extensive investment network with the expertise of Citigroup’s Spread Products Investment in Technologies (SPRINT) team, a leading venture equity investor in fintech specialty lending.

Akhil Bansal, head of asset-backed finance at Carlyle, stated that “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.” Bansal further added that, “By combining our deep credit and structuring expertise with Citi’s leading presence in the fintech investment landscape, we’re well-positioned to capture emerging opportunities and support the next generation of financial technology leaders.”

On the other hand, Rajiv Amlani, head of Private Markets Coverage at Citigroup, further added that “This collaboration leverages the best of both our firms. Through the scale of our franchise, we are uniquely positioned to unlock opportunities by bringing the dynamism of innovative tech platforms to an established global leader such as Carlyle.”

Price Performance & Zacks Rank of CG

Over the past three months, shares of Carlyle have risen 9% compared with the industry’s growth of 1.1%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Finance Firms

Last month, State Street Corporation’s (STT - Free Report) asset management arm, State Street Global Advisors (“SSGA”), entered a strategic alliance with smallcase. The alliance aims to expand global market access for Indian investors and enhance SSGA's presence in India's fintech sector.

The partnership will provide STT’s arm with a distribution opportunity for its SPDR ETFs by featuring them on smallcase’s platform technology. This will enhance SSGA's global investment accessibility for Indian investors through technology-driven solutions.

Similarly, in the same month, UBS Group AG (UBS - Free Report) entered a strategic partnership with General Atlantic, a US-based investment firm, to focus on private credit opportunities.

The collaboration between UBS and General Atlantic aims to expand the access of investing clients and borrowers to a broader range of direct lending and other credit products. By combining UBS’s advisory and investment banking origination capabilities with General Atlantic’s extensive global network, the partnership will create compelling private credit solutions.

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