Citi and Apollo Announce $25 Billion Private Credit, Direct Lending Program
Citigroup Inc. (NYSE: C) and Apollo (NYSE: APO) have announced a landmark $25 billion private credit, direct lending program in North America, with potential for global expansion. The program includes participation from Mubadala Investment Company as Apollo's strategic partner and Apollo's subsidiary, Athene. This strategic initiative aims to enhance access to private lending capital for corporate and sponsor clients, combining Citi's banking expertise with Apollo's extensive capital base.
The program is expected to finance approximately $25 billion of debt opportunities over the next several years, covering both corporate and financial sponsor transactions. Citi and Apollo anticipate strong client demand and maintain flexibility to expand the program's size beyond the initial $25 billion. This collaboration is designed to provide clients with a range of innovative, private financing solutions to meet their evolving needs and strategic goals.
Citigroup Inc. (NYSE: C) e Apollo (NYSE: APO) hanno annunciato un programma innovativo di $25 miliardi di credito privato e prestiti diretti in Nord America, con potenzialità di espansione globale. Il programma prevede la partecipazione della Mubadala Investment Company come partner strategico di Apollo e della sussidiaria di Apollo, Athene. Questa iniziativa strategica mira a migliorare l'accesso al capitale di prestito privato per i clienti aziendali e gli sponsor, combinando l'esperienza bancaria di Citi con la vasta base di capitali di Apollo.
Si prevede che il programma finanzi circa $25 miliardi di opportunità di debito nei prossimi anni, coprendo sia le transazioni aziendali che quelle degli sponsor finanziari. Citi e Apollo si aspettano una forte domanda da parte dei clienti e mantengono la flessibilità per ampliare il volume del programma oltre il iniziale $25 miliardi. Questa collaborazione è progettata per fornire ai clienti una gamma di soluzioni di finanziamento private e innovative per soddisfare le loro esigenze in evoluzione e i loro obiettivi strategici.
Citigroup Inc. (NYSE: C) y Apollo (NYSE: APO) han anunciado un programa innovador de $25 mil millones en crédito privado y préstamos directos en América del Norte, con posibilidades de expansión global. El programa incluye la participación de la Mubadala Investment Company como socio estratégico de Apollo y la subsidiaria de Apollo, Athene. Esta iniciativa estratégica tiene como objetivo mejorar el acceso al capital de préstamos privados para clientes corporativos y patrocinadores, combinando la experiencia bancaria de Citi con la amplia base de capital de Apollo.
Se espera que el programa financie aproximadamente $25 mil millones en oportunidades de deuda en los próximos años, abarcando tanto transacciones corporativas como de patrocinadores financieros. Citi y Apollo anticipan una fuerte demanda por parte de los clientes y mantienen flexibilidad para ampliar el tamaño del programa más allá de los $25 mil millones iniciales. Esta colaboración está diseñada para ofrecer a los clientes una variedad de soluciones de financiamiento privado e innovadoras para satisfacer sus necesidades en evolución y sus objetivos estratégicos.
시티그룹 Inc. (NYSE: C)와 아폴로 (NYSE: APO)는 북미에서 250억 달러 규모의 민간 신용 및 직접 대출 프로그램을 발표했으며, 글로벌 확장 가능성을 고려하고 있습니다. 이 프로그램은 아폴로의 전략적 파트너인 무바달라 투자 회사와 아폴로의 자회사 아시니가 참여합니다. 이 전략적 이니셔티브는 기업 및 스폰서 고객을 위한 민간 대출 자본 접근성을 향상시키는 것을 목표로 하며, 시티의 은행 전문성과 아폴로의 방대한 자본 기반을 결합합니다.
프로그램은 향후 몇 년 동안 약 250억 달러의 부채 기회를 금융 지원할 것으로 예상됩니다, 기업 및 금융 스폰서 거래를 포함하여. 시티와 아폴로는 고객의 강한 수요를 예상하고 있으며, 프로그램 규모를 초기의 250억 달러 이상으로 확대할 수 있는 유연성을 유지합니다. 이 협업은 고객의 변화하는 요구와 전략적 목표를 충족하기 위해 혁신적인 민간 금융 솔루션의 범위를 제공하도록 설계되었습니다.
Citigroup Inc. (NYSE: C) et Apollo (NYSE: APO) ont annoncé un programme marquant de 25 milliards de dollars de crédit privé et de prêts directs en Amérique du Nord, avec un potentiel d'expansion mondiale. Le programme inclut la participation de la Mubadala Investment Company en tant que partenaire stratégique d'Apollo et de la filiale d'Apollo, Athene. Cette initiative stratégique vise à améliorer l'accès au capital de prêt privé pour les clients d'entreprise et de sponsors, alliant l'expertise bancaire de Citi à la vaste base de capitaux d'Apollo.
Il est prévu que le programme finance environ 25 milliards de dollars d'opportunités de dette au cours des prochaines années, couvrant à la fois les transactions d'entreprise et celles des sponsors financiers. Citi et Apollo prévoient une forte demande de la part des clients et conservent la flexibilité d'élargir la taille du programme au-delà des 25 milliards de dollars initiaux. Cette collaboration est conçue pour offrir aux clients un éventail de solutions de financement privé innovantes pour répondre à leurs besoins évolutifs et à leurs objectifs stratégiques.
Citigroup Inc. (NYSE: C) und Apollo (NYSE: APO) haben ein wegweisendes 25 Milliarden Dollar umfassendes Programm für private Kredit- und Direktdarlehen in Nordamerika angekündigt, mit Potenzial für eine globale Expansion. Das Programm umfasst die Teilnahme der Mubadala Investment Company als strategischem Partner von Apollo sowie der Tochtergesellschaft von Apollo, Athene. Diese strategische Initiative hat zum Ziel, den Zugang zu privatem Kreditkapital für Unternehmens- und Sponsor-Kunden zu verbessern, indem die Bankexpertise von Citi mit der umfangreichen Kapitalbasis von Apollo kombiniert wird.
Es wird erwartet, dass das Programm in den nächsten Jahren etwa 25 Milliarden Dollar an Schuldenmöglichkeiten finanzieren wird, wobei sowohl Unternehmens- als auch Finanzsponsortransaktionen abgedeckt werden. Citi und Apollo erwarten eine starke Kundennachfrage und behalten sich die Flexibilität vor, die Größe des Programms über die anfänglichen 25 Milliarden Dollar hinaus zu erweitern. Diese Zusammenarbeit ist darauf ausgelegt, den Kunden eine Vielzahl innovativer, privater Finanzierungslösungen anzubieten, um ihre sich wandelnden Bedürfnisse und strategischen Ziele zu erfüllen.
- Landmark $25 billion private credit, direct lending program established
- Potential for global expansion beyond North America
- Participation from strategic partners Mubadala Investment Company and Athene
- Enhanced access to private lending capital for corporate and sponsor clients
- Flexibility to expand program size beyond initial $25 billion
- None.
Insights
This $25 billion private credit and direct lending program between Citi and Apollo is a significant development in the financial sector. It represents a strategic move to capitalize on the growing demand for private credit solutions. The program's scale is unprecedented, marking it as the largest relationship of its kind.
Key points to consider:
- The program enhances Citi's ability to offer innovative financing solutions to its corporate and sponsor clients.
- It leverages Apollo's extensive capital base and expertise in private credit.
- The inclusion of Mubadala and Athene as partners adds further depth and resources to the program.
- There's potential for expansion beyond the initial
$25 billion and into additional geographies.
For investors, this partnership could lead to increased revenue streams for both Citi and Apollo, potentially boosting their financial performance. It also positions both firms at the forefront of the rapidly growing private credit market, which could enhance their competitive edge in the long term.
This strategic partnership between Citi and Apollo is a clear response to the evolving landscape of corporate financing. The private credit market has been expanding rapidly, filling the gap left by traditional banks due to regulatory constraints. This
Key market implications:
- Increased competition in the private lending space, potentially leading to more favorable terms for borrowers.
- A blurring of lines between traditional banking and alternative asset management.
- Potential for market share gains in the lucrative middle-market lending segment.
- Possible pressure on smaller private credit firms who may struggle to compete at this scale.
The flexibility to expand beyond
Mubadala and Athene to Participate as Apollo Strategic Partner and Affiliate, Respectively
Citi & Apollo Private Credit, Direct Lending Program Marks Largest Relationship of its Kind
The strategic program is designed to significantly enhance access for corporate and sponsor clients to the private lending capital pool, at a scale and size which can provide funding certainty in strategic transactions. The program will join Citi’s expansive banking client reach, origination and capital markets expertise with Apollo’s scaled, extensive capital base. The firms anticipate the program will finance approximately
“This exciting project brings Citi together with Apollo and other best-in-class partners to offer a full suite of innovative, private financing solutions to our clients,” said Viswas Raghavan, Head of Banking and Executive Vice Chair at Citi. “Combining the strength of Citi’s Banking and Capital Markets franchise with Apollo’s deep capital resources will provide clients with a range of options to meet their evolving financing needs and achieve their strategic goals.”
Apollo Co-President Jim Zelter said, “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. 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. As financial markets continue to evolve, together we believe this is a win-win arrangement that uses our respective strengths and assets to better serve our clients and other stakeholders in a reliable, scalable and capital efficient manner.”
Cravath, Swaine & Moore LLP is serving as legal counsel and Citigroup Global Markets Inc. is acting as advisor to Citi; Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel and Sullivan & Cromwell LLP is serving as regulatory counsel to Apollo.
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of
Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926673479/en/
Lauren Sambrotto
Communications
Citi
(917) 656-8511
Lauren.sambrotto@citi.com
Joanna Rose
Global Head of Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Source: Citigroup Inc.
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