A private capital program is an arranged pool of funding raised from non-public sources such as institutional investors, wealthy individuals, or private funds to finance a company’s growth, acquisitions, projects, or operations. Like a club of backers who quietly provide cash instead of selling shares on the open market, it matters to investors because it affects a company’s ability to grow without public stock offerings, can change ownership stakes, influence risk and future returns, and signal how management plans to fund strategy.
direct lendingfinancial
Direct lending is when investors or investment funds lend money straight to companies instead of those companies borrowing from traditional banks. It matters to investors because it can offer higher interest income than public bonds or bank deposits, much like lending money to a neighbor for a premium, but it also carries greater credit risk and lower liquidity since the loans are often private and harder to sell.
private creditfinancial
Private credit is a form of borrowing where companies or organizations obtain loans directly from private lenders rather than traditional banks or financial markets. It often involves customized financing arrangements that are not traded publicly, making it a way for businesses to access funding outside of standard channels. For investors, private credit offers the potential for higher returns, but typically comes with increased risk and less liquidity compared to more conventional investments.
sub-investment grade debtfinancial
Debt rated below the threshold that credit agencies call “investment grade,” meaning the borrower is seen as higher risk. Like lending money to someone with a shaky credit history, these securities usually pay higher interest to compensate for a greater chance of missed payments or default. Investors care because they offer higher yield but increase portfolio risk, can be harder to sell in stress, and most conservative funds and lenders restrict them.
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Collaboration to enhance offering to clients across the EMEA region
LONDON--(BUSINESS WIRE)--
Citigroup Inc. (NYSE: C) and HPS Investment Partners, a part of BlackRock, today announced a €15 billion Private Capital Program (the “Program”), a strategic collaboration to expand comprehensive capital solutions and access to private financing for corporate and sponsor-owned borrowers in the region.
The Program intends to finance €15 billionof debt opportunities in EMEA over an initial five-year term.
Under the terms of the initiative, Citi will leverage its extensive Investment, Corporate, and Commercial Bank led origination capabilities to source investment opportunities for the Program, which is designed to serve borrowers with principal business based in Continental Europe, the UK, and eventually the Middle East. Eligible opportunities will comprise a broad range of sub-investment grade debt instruments.
"To meet the increasing demand from our corporate and sponsor clients for tailored private credit solutions, we are excited to announce this collaboration with HPS, a part of BlackRock,” said John McAuley, Co-Head of Debt Capital Markets, Citi. “This Program is designed to directly support our clients’ strategic objectives across the EMEA region by combining Citi’s deep client relationships and origination strength with their significant capital and structuring expertise. Together, we are creating a best-in-class offering to help our clients achieve their goals."
Matthieu Boulanger, Partner and Head of Europe at HPS, a part of BlackRock, added, "We are pleased to collaborate with Citi to bring expanded direct lending solutions to the EMEA market. 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.”
The collaboration demonstrates both institutions’ proactive approach to meeting evolving client needs in the private credit market, leveraging strong relationships to drive growth and provide critical financing solutions.
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 the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
HPS, a part of BlackRock, is a leading global, credit-focused alternative investment manager that seeks to provide creative capital solutions and generate attractive risk-adjusted returns. Our Private Financing Solutions platform, with $381 billion of assets under management as of March 31, 2026, manages strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions.
