Citi, BlackRock’s HPS Sign €15 Billion Private Credit Agreement

Citigroup Inc. and BlackRock Inc.’s private credit unit HPS Investment Partners have struck an agreement to collaborate on direct-lending deals across Europe, targeting as much as €15 billion ($17.5 billion) of financings over the next five years.

The initiative — Citi/HPS Private Capital Program — will focus on sub-investment grade debt for corporate and private equity clients in continental Europe and the UK, according to a statement seen by Bloomberg News. The Wall Street firms will work together on both senior and junior credit options and eventually expand the collaboration to deals in the Middle East.