Citi and BlackRock’s HPS Strike €15 Billion EMEA Private Credit Deal
Citigroup and HPS Investment Partners — the private credit business that BlackRock acquired in 2025 — announced a €15 billion (~$17.5 billion) Private Capital Program on May 18, 2026. The five-year program will originate direct loans to companies across Continental Europe, the United Kingdom and the Middle East.
The deal is the European sequel to Citi’s $25 billion direct-lending pact with Apollo Global Management announced in September 2024, and it formalizes a pattern that has reshaped corporate debt markets: big banks originate, private credit funds hold the paper.
Who: The Principals
- Matthieu Boulanger, head of BlackRock HPS’s European business
- John McAuley, Citi’s co-head of debt capital markets
- Larry Fink, chairman and CEO of BlackRock
What: The Structure
| Program | Bank | Private credit partner | Size | Geography | Announced |
|---|---|---|---|---|---|
| Citi-Apollo Direct Lending Program | Citigroup | Apollo (with Mubadala, Athene) | $25.0B | North America | Sep 26, 2024 |
| Citi-HPS Private Capital Program | Citigroup | HPS (BlackRock subsidiary) | €15.0B (~$17.5B) | EMEA | May 18, 2026 |
Citi’s Corporate and Commercial Bank will source opportunities from existing borrower relationships; HPS contributes the balance-sheet capital. The program targets sub-investment-grade debt — sometimes called “junk debt” — and will eventually include junior and mezzanine financings.
Where: Why EMEA Matters
Direct lending funds account for an estimated 15–20% of leveraged finance origination across the EU and UK, compared with north of 80% in U.S. middle-market sponsor deals. European corporates have historically leaned on bank revolvers and the broadly syndicated loan market, but the same regulatory and capital pressures that pushed U.S. banks to step back are now squeezing European lenders.
Why: A Strategic Coup for BlackRock
For HPS, getting a marquee bank origination channel locked in for EMEA is a structural advantage. Apollo, Ares Management, Blackstone and Goldman Sachs Asset Management are all chasing the same European deal flow, often through their own bank tie-ups. A five-year program with Citi gives HPS a way to deploy capital faster than competitors who have to source deals one at a time.
“This collaboration will allow us to benefit from Citi’s extensive network and origination pipeline in Europe and the Middle East,” Boulanger said.
McAuley said the deal will help the bank “meet the growing demand from corporate clients and sponsors for customized private lending solutions.”
Source
- HPS Investment Partners press release: “Citi and HPS Announce €15 Billion Private Capital Program to Expand Direct Lending in EMEA,” May 18, 2026
- Reuters: “Citi partners with BlackRock’s HPS for $17.5 billion private credit program,” May 18, 2026
- Citi, BlackRock’s HPS Strike €15B EMEA Credit Deal — Equity Capital Market