BlackRock’s HPS Investment Partners and US banking giant Citigroup have launched a €15bn (£13bn) private credit programme to expand direct lending to corporates in Europe and the Middle East.
The strategy, named the Private Capital Program, will finance €15bn of debt opportunities over an initial five-year term, the firms said.
Both firms also said the programme will initially lend to businesses in Europe and the UK before eventually expanding into the Middle East, with opportunities across a broad range of sub-investment-grade debt instruments.
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Through the partnership, Citi will source investment opportunities for the programme, marking a move by the bank to expand its presence in the growing private credit market.
“This programme is designed to directly support our clients’ strategic objectives across the Europe, the Middle East and Asia (EMEA) region by combining Citi’s deep client relationships and origination strength with their significant capital and structuring expertise,” said John McAuley, co-head of debt capital markets at Citi.
BlackRock acquired HPS for approximately $12bn (£8.9bn) in December 2024 in a move to expand its private credit platform, with HPS now serving as the firm’s credit-focused alternative investment manager, overseeing $381bn in assets under management.
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“We are pleased to collaborate with Citi to bring expanded direct lending solutions to the EMEA market,” said Matthieu Boulanger, partner and head of Europe at HPS, part of BlackRock. “This collaboration will enable us to leverage Citi’s extensive network and origination pipeline in EMEA, further strengthening our ability to deliver tailored financing options to a broad range of borrowers.”
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