Citi partners with Apollo to form $25b private credit

The program will launch in North America; may expand to other markets in the future.

Citigroup has entered into an exclusive agreement with asset manager Apollo to form a $25b private credit, direct lending program.

The program will launch in North America, with the potential to expand to additional markets, Citi said in a press release.

Mubadala Investment Company will participate in the program as Apollo’s strategic partner. Apollo’s subsidiary Athene is also a participant.

The firms anticipate the program will finance approximately $25b of debt opportunities over the next several years. 

Citi and Apollo expect strong client demand and said that they may expand the size of the program beyond the initial $25b.

Cravath, Swaine & Moore LLP is serving as legal counsel and Citigroup Global Markets Inc. is acting as advisor to Citi.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel and Sullivan & Cromwell LLP is serving as regulatory counsel to Apollo.