Citigroup, Inc. (C) has entered into an exclusive agreement with Apollo Global Management, Inc. (APO) to launch a $25 billion private credit and direct lending program. This groundbreaking initiative will initially focus on North America, with potential expansion to other regions in the future.
The program’s primary objective is to enhance access for corporate and sponsor clients to the private lending capital pool, ensuring funding certainty for critical transactions. By combining Citi’s extensive banking expertise with Apollo’s substantial capital base, the partnership aims to finance approximately $25 billion in debt opportunities over the next few years.
Both firms anticipate strong demand from clients and have the flexibility to expand the program beyond this initial commitment. Mubadala Investment Company, Apollo’s strategic partner, and Apollo subsidiary Athene will also participate, having the opportunity to make commitments aligned with their respective mandates.
Jim Zelter, Co-President of Apollo, expressed enthusiasm about the partnership, stating, “We are pleased to form a first-of-its-kind, scaled direct lending program with Citi, a preeminent banking partner and leader in capital markets and advisory.” He continued, “Our collaboration will allow Citi to enhance its client offerings and bring more private solutions to bear, while enabling Apollo to increase origination flow and tap into Citi’s extensive client relationships.”
Investors interested in gaining exposure to Citigroup can explore options like the First Trust Nasdaq Bank ETF (FTXO) and the Series Portfolios Trust InfraCap Equity Income Fund ETF (ICAP).
Citigroup’s stock (C) closed Thursday at $61.61, reflecting a 2.03% increase.
