Full Breakdown
Citi and BlackRock’s HPS Launch €15 billion Private Credit Program Across EMEA
5/18/2026, 9:21:01 PM
Core Event: €15 billion Citi-HPS Private Credit Program Launched
On 18 May 2026, Citigroup and HPS Investment Partners, BlackRock’s private-credit arm, announced a €15 billion ($?17.5 billion) five-year direct-lending program for sub-investment-grade borrowers in Continental Europe, the United Kingdom and, later, the Middle East. Citi will originate deals through its Investment, Corporate and Commercial Bank platforms; HPS will provide capital and structuring expertise. The alliance follows Citi’s 2024 $25 billion partnership with Apollo Global, reflecting a broader industry shift toward “originate-to-distribute” models as banks face tighter capital constraints.
Data & Statistics
- Program size: €15 billion
- HPS AUM (Private Financing Solutions): $381 billion
- European private-credit AUM (2024): €400 billion, projected near €1 trillion by 2030
- Private-debt deployed in 2024: €68.7 billion
- UK & Ireland: ~ 1/3 of Europe’s direct-lending transactions
Official Statements, Responses & Criticism
Citi’s co-head of debt capital markets, John McAuley, said the partnership meets growing client demand for bespoke private-credit solutions and leverages Citi’s extensive origination network. HPS’s head of Europe, Matthieu Boulanger, highlighted that combining Citi’s pipeline with HPS’s capital creates a best-in-class financing platform. BlackRock CEO Larry Fink has described private markets as a primary growth driver for the firm. The Bank of England’s Financial Policy Committee, however, warned that the market’s opacity and interconnectedness could pose systemic risks, and the Prudential Regulation Authority has begun stress-testing lenders to assess resilience.
Conflicting Reports & Gaps
Sources differ on the dollar conversion of the €15 billion commitment, citing $17.48 billion (Reuters) and $17.5 billion (Pulse2). No further clarification is provided.
Verbatim Quotes
- “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. This Program is designed to directly support our clients’ strategic objectives across the EMEA region by combining Citi’s deep client relationships and origination strength with their significant capital and structuring expertise. Together, we are creating a best-in-class offering to help our clients achieve their goals.” — John McAuley, Co-Head of Debt Capital Markets, Citi
- “We are pleased to collaborate with Citi to bring expanded direct lending solutions to the EMEA market. This collaboration will enable us to leverage Citi’s extensive network and origination pipeline in EMEA, further strengthening our ability to deliver tailored financing options to a broad range of borrowers.” — Matthieu Boulanger, Partner and Head of Europe, HPS
- “The BoE’s Financial Policy Committee has warned that the opaque and highly interconnected nature of the market could pose risks to broader financial stability, drawing parallels to the vulnerabilities exposed in the run-up to the 2008 crisis.” — Bank of England, Financial Policy Committee
- “BlackRock CEO Larry Fink has publicly identified private markets, and private credit specifically, as a “primary growth driver” for the firm’s future.” — Larry Fink, CEO, BlackRock
What’s Next
Underwriting starts mid-2026, with quarterly reviews over the five-year term. The BoE’s stress-test regime and PRA oversight will shape risk management, while Citi plans to extend the program to the Middle East after establishing a foothold in Europe and the UK.
