Apollo and Citigroup have agreed to form a $25 billion private credit fund, with participation from Mubadala Investment Company and Apollo subsidiary Athene.
The tie-up between the two major institutions is “the largest relationship of its kind,” the companies said in a statement.
“The program will join Citi’s expansive banking client reach, origination and capital markets expertise with Apollo’s scaled, extensive capital base,” the companies said.
The fund will target corporate and financial sponsor transactions in North America, with the potential to expand to other regions. The lenders suggest they could “significantly expand the size of the program beyond the initial $25 billion.”
The pact comes after Apollo’s ATLAS SP Partners forming a strategic partnership with BNP Paribas, which was unveiled last week, targeting investment-grade asset-backed credit generated by Apollo and Atlas with a $5 billion initial financing commitment.
“The partnership between Apollo and Citigroup is yet another example of the rapid growth of private credit into mainstream finance,” said Ana Arsov, global head of private credit at Moody’s. “Citigroup retains its fees and clients while moving the responsibility for originating non-investment grade credit and capital requirements to Apollo and its partners.”
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