Citigroup Inc. (NYSE: C) and HPS Investment Partners, part of BlackRock, announced a €15 billion Private Capital Program to expand direct lending capabilities across Europe, the Middle East and Africa.

The five-year initiative will finance debt opportunities for corporate and sponsor-owned borrowers in Continental Europe, the UK, and eventually the Middle East. Citi will use its investment, corporate and commercial banking operations to source investment opportunities for the program, which will focus on sub-investment grade debt instruments.

Under the collaboration, Citi will leverage its origination capabilities to identify financing opportunities for borrowers with principal operations in the EMEA region. The program targets a broad range of debt instruments below investment grade.

"To meet the increasing demand from our corporate and sponsor clients for tailored private credit solutions, we are excited to announce this collaboration with HPS, a part of BlackRock," said John McAuley, Co-Head of Debt Capital Markets at Citi.

Matthieu Boulanger, Partner and Head of Europe at HPS, said the collaboration will enable the firm to leverage Citi's network and origination pipeline in EMEA.

HPS manages $381 billion in assets under management as of March 31, 2026, according to the company statement. The firm operates strategies across the capital structure, including privately negotiated senior debt, junior capital solutions, liquid credit, asset-based finance and real estate.

The program represents both institutions' efforts to address client needs in the private credit market by combining Citi's regional relationships with HPS's capital and structuring capabilities.