Citi, HPS Launch €15B Private Capital Program in EMEA

In a significant move to bolster private capital solutions across Europe, the Middle East, and Africa (EMEA), Citigroup Inc. and HPS Investment Partners, an affiliate of BlackRock, have unveiled a substantial €15 billion Private Capital Program. This strategic alliance is designed to channel significant debt financing to corporate and sponsor-backed entities throughout the region, addressing a growing demand for bespoke credit facilities.

The ambitious program is set to deploy its capital over an initial five-year period, targeting a broad spectrum of sub-investment grade debt opportunities. Citi will act as the primary engine for deal origination, leveraging its extensive network within its Investment, Corporate, and Commercial Banking divisions. This robust origination capability will identify and present suitable investment prospects originating from Continental Europe, the UK, and with future expansion planned for the Middle East.

This collaboration underscores a proactive response to the evolving dynamics of the private credit market. As traditional lending channels face increasing scrutiny and regulatory shifts, the demand for direct lending solutions that offer flexibility and speed has intensified. The EMEA direct lending market, estimated to be worth hundreds of billions of euros, has seen consistent growth, driven by private equity firms seeking alternative financing for buyouts and growth capital, as well as corporates looking for tailored debt structures.

John McAuley, Co-Head of Debt Capital Markets at Citi, highlighted the program's client-centric approach. "We are thrilled to partner with HPS, a part of BlackRock, to meet the escalating need for customized private credit solutions among our corporate and sponsor clients," McAuley stated. "This initiative is engineered to directly empower our clients' strategic ambitions across EMEA by merging Citi's deep client relationships and origination prowess with HPS's considerable capital and structuring acumen. Together, we are forging a premier offering to facilitate our clients' success."

Matthieu Boulanger, Partner and Head of Europe at HPS, a part of BlackRock, echoed this sentiment, emphasizing the synergistic benefits of the partnership. "We are delighted to join forces with Citi to broaden the availability of direct lending solutions within the EMEA market," Boulanger commented. "This alliance will allow us to harness Citi's expansive network and origination pipeline in EMEA, thereby enhancing our capacity to deliver customized financing options to a diverse array of borrowers." HPS Investment Partners, managing approximately $381 billion in assets as of March 31, 2026, brings substantial expertise in credit-focused alternative investments and a wide array of capital solutions.

The formation of this substantial private capital program by two financial powerhouses signals a strong conviction in the continued growth and importance of direct lending in Europe. It provides a vital source of capital for businesses navigating complex financial environments and seeking strategic growth, reinforcing the role of private credit as a critical component of the broader financial ecosystem.