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C Partners With BlackRock's HPS: A Win for Its Private Credit Push?
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Key Takeaways
Citigroup and BLK-backed HPS launched a program to expand private lending across Europe and the U.K.
C can offer flexible financing while reducing balance-sheet pressure through private capital backing.
Citigroup may boost fee income and cross-selling through deeper borrower and sponsor relationships.
Citigroup Inc. (C - Free Report) , along with HPS Investment Partners (“HPS”), which is part of BlackRock Inc. (BLK - Free Report) , announced a €15-billion ($17.5 billion) private credit program to expand direct lending across Europe, the Middle East and Africa.
The five-year initiative will focus on financing debt opportunities for corporate and sponsor-owned borrowers, initially across Continental Europe and the U.K., with the potential to expand into the Middle East. Under the partnership, C will leverage its investment banking, corporate banking and commercial banking network to source lending opportunities, while HPS, backed by BlackRock’s global asset-management platform, will contribute private credit capital, structuring expertise and underwriting capabilities.
The partnership comes as private credit continues to move from a niche alternative asset class into a mainstream source of corporate financing. Borrowers, particularly sub-investment-grade companies and private equity-backed firms, are increasingly seeking flexible financing options at a time when traditional bank lending remains selective. Against this backdrop, C’s collaboration with HPS could strengthen its position in one of the fastest-growing areas of credit markets.
One key benefit for Citigroup is broader client coverage. The bank can use its deep relationships with corporates, financial sponsors and middle-market companies to identify borrowers that need customized debt financing. Through HPS Investment Partners, C can offer private credit solutions that may be faster, more flexible and better tailored than traditional syndicated loans or public debt offerings.
The partnership also supports a more capital-efficient growth strategy. Rather than relying solely on its balance sheet to fund loans, Citigroup can work with HPS to provide financing backed by private capital. This allows the bank to remain active in lending while reducing pressure on its capital resources. The deal may create opportunities for additional fee income. By originating, arranging and structuring private credit transactions, C can earn fees while deepening relationships with borrowers and sponsors. These relationships could support cross-selling opportunities in advisory, treasury services, risk management and capital markets.
Strategically, the agreement reflects the evolving structure of global credit markets, where banks like Citigroup are increasingly partnering with asset managers such as BlackRock, through units like HPS, to combine origination capabilities with the scale and flexibility of private capital.
Private Credit Expansion Efforts by Other Finance Firms
Goldman Sachs (GS - Free Report) is also making a more decisive strategic pivot, with private credit emerging as a key pillar of its long-term growth story. The company is aggressively expanding its private equity and alternatives platform through acquisitions, platform enhancements and the integration of new investment capabilities, all of which should strengthen its growth prospects over time. In sync with this, in January 2026, Goldman Sachs acquired Industry Ventures, a leading venture capital platform that invests across all stages of the venture capital lifecycle.
Goldman Sachs aims to significantly scale its private credit business by increasing lending to private equity firms and asset managers, expanding across Europe, the U.K. and Asia, and growing its private credit portfolio to $300 billion by 2029.
C’s Price Performance & Zacks Rank
Shares of Citigroup have surged 61.3% in the past year compared with the industry’s growth of 21.5%.
View the Zacks #1 Rank List
Image: Shutterstock
C Partners With BlackRock's HPS: A Win for Its Private Credit Push?
Key Takeaways
Citigroup Inc. (C - Free Report) , along with HPS Investment Partners (“HPS”), which is part of BlackRock Inc. (BLK - Free Report) , announced a €15-billion ($17.5 billion) private credit program to expand direct lending across Europe, the Middle East and Africa.
The five-year initiative will focus on financing debt opportunities for corporate and sponsor-owned borrowers, initially across Continental Europe and the U.K., with the potential to expand into the Middle East. Under the partnership, C will leverage its investment banking, corporate banking and commercial banking network to source lending opportunities, while HPS, backed by BlackRock’s global asset-management platform, will contribute private credit capital, structuring expertise and underwriting capabilities.
The partnership comes as private credit continues to move from a niche alternative asset class into a mainstream source of corporate financing. Borrowers, particularly sub-investment-grade companies and private equity-backed firms, are increasingly seeking flexible financing options at a time when traditional bank lending remains selective. Against this backdrop, C’s collaboration with HPS could strengthen its position in one of the fastest-growing areas of credit markets.
One key benefit for Citigroup is broader client coverage. The bank can use its deep relationships with corporates, financial sponsors and middle-market companies to identify borrowers that need customized debt financing. Through HPS Investment Partners, C can offer private credit solutions that may be faster, more flexible and better tailored than traditional syndicated loans or public debt offerings.
The partnership also supports a more capital-efficient growth strategy. Rather than relying solely on its balance sheet to fund loans, Citigroup can work with HPS to provide financing backed by private capital. This allows the bank to remain active in lending while reducing pressure on its capital resources. The deal may create opportunities for additional fee income. By originating, arranging and structuring private credit transactions, C can earn fees while deepening relationships with borrowers and sponsors. These relationships could support cross-selling opportunities in advisory, treasury services, risk management and capital markets.
Strategically, the agreement reflects the evolving structure of global credit markets, where banks like Citigroup are increasingly partnering with asset managers such as BlackRock, through units like HPS, to combine origination capabilities with the scale and flexibility of private capital.
Private Credit Expansion Efforts by Other Finance Firms
Goldman Sachs (GS - Free Report) is also making a more decisive strategic pivot, with private credit emerging as a key pillar of its long-term growth story. The company is aggressively expanding its private equity and alternatives platform through acquisitions, platform enhancements and the integration of new investment capabilities, all of which should strengthen its growth prospects over time. In sync with this, in January 2026, Goldman Sachs acquired Industry Ventures, a leading venture capital platform that invests across all stages of the venture capital lifecycle.
Goldman Sachs aims to significantly scale its private credit business by increasing lending to private equity firms and asset managers, expanding across Europe, the U.K. and Asia, and growing its private credit portfolio to $300 billion by 2029.
C’s Price Performance & Zacks Rank
Shares of Citigroup have surged 61.3% in the past year compared with the industry’s growth of 21.5%.
Image Source: Zacks Investment Research
Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.