Citi, Carlyle Partner Up to Lend to, Invest in Fintechs (1)

Citigroup Inc. and Carlyle Group Inc. are teaming up to provide debt and equity financing to growing financial technology firms, looking to take advantage of the booming asset-backed finance market.

The two firms inked an agreement that will allow them to co-invest in young companies and the financial assets they originate, such as consumer loans, according to an emailed statement.

Private credit firms have been looking for ways to increase their share of the $5.2 trillion asset-backed finance market, which involves debt backed by streams of contractual cash flows tied to a defined pool of assets. These assets can be ...