Citigroup, Inc. (NYSE:C) has inked an exclusive agreement with Apollo Global Management, Inc. (NYSE:APO) to establish a $25 billion private credit and direct lending program.
The program will start in North America, potentially expanding to other regions.
The strategic program aims to enhance access for corporate and sponsor clients to the private lending capital pool, ensuring funding certainty for strategic transactions.
By combining Citi's banking expertise with Apollo's capital base, the program is expected to finance approximately $25 billion in debt opportunities over the next few years.
Both firms anticipate strong client demand and have the flexibility to expand the program beyond this initial amount.
The program will involve participation from Mubadala Investment Company as Apollo's strategic partner, along with Apollo's subsidiary, Athene, both of which will have the opportunity to make commitments aligned with their respective mandates.
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."
Also Read: Citigroup's China Plans Delayed by US Regulatory Issues: Report
Investors can gain access to the stock via First Trust Nasdaq Bank ETF (NASDAQ:FTXO) and Series Portfolios Trust InfraCap Equity Income Fund ETF (NYSE:ICAP).
Price Action: C shares are up 2.03% at $61.61 at the last check Thursday.
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