Citi, Apollo announces $25B private credit, direct lending program

Citigroup (C) and Apollo (APO) announced that they have entered into an exclusive agreement for a subsidiary of Citi and certain affiliates of Apollo to form a landmark $25B private credit, direct lending program initially in North America, with the potential to expand to additional geographies. The program will include participation from Mubadala Investment company as Apollo’s strategic partner as well as Apollo’s subsidiary, Athene, both of which will have the opportunity to join commitments appropriate for their respective mandates. The strategic program is designed to significantly enhance access for corporate and sponsor clients to the private lending capital pool, at a scale and size which can provide funding certainty in strategic transactions. The program will join Citi’s expansive banking client reach, origination and capital markets expertise with Apollo’s scaled, extensive capital base. The firms anticipate the program will finance approximately $25B of debt opportunities over the next several years, encompassing both corporate and financial sponsor transactions. Citi and Apollo expect strong client demand and maintain the flexibility to significantly expand the size of the program beyond the initial $25B.