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.

“It’s HPS’ capital, ...