Citi and Apollo Join Forces for $25 Billion Lending Initiative
Citi and Apollo Collaborate on a Landmark Lending Program
In an exciting development in the financial landscape, Citigroup Inc. (NYSE: C) and Apollo (NYSE: APO) have forged a strategic alliance to establish a groundbreaking $25 billion private credit and direct lending program. This initiative is expected to begin in North America, with aspirations to extend its reach to other global markets in the future.
Program Details and Strategic Importance
The innovative program aims to significantly improve access for corporate and sponsor clients to vital private lending resources. By leveraging the considerable strengths of both Citi, known for its expansive banking client reach and expertise in capital markets, and Apollo, with its robust capital base, this collaboration promises to deliver financial certainty in strategic transactions.
Anticipated Impact on Client Financing Needs
This initiative is designed to address the growing demand for private capital access, anticipating the financing of approximately $25 billion in debt opportunities over the coming years. The expected demand from clients, along with the potential for expanding beyond the initial funding target, highlights the robust nature of this program.
Leadership Insights
Viswas Raghavan, the Head of Banking and Executive Vice Chair at Citi, expressed enthusiasm about this collaboration: "This exciting project brings Citi together with Apollo and other best-in-class partners to offer a full suite of innovative, private financing solutions to our clients. Combining the strength of Citi’s Banking and Capital Markets franchise with Apollo’s deep capital resources will provide clients with a range of options to meet their evolving financing needs and achieve their strategic goals."
Beneficial Outcomes for Stakeholders
Jim Zelter, Co-President of Apollo, further elaborated on the mutual benefits: "We are pleased to form this scaled direct lending program with Citi, a leader in capital markets. This partnership allows both organizations to amplify their client offerings while enabling Apollo to enhance its origination capabilities through Citi’s extensive client connections. As financial markets evolve, our joint efforts represent a win-win arrangement for all stakeholders involved, promoting reliability, scalability, and capital efficiency in financing solutions."
Legal and Advisory Support
The complex nature of this groundbreaking program has attracted skilled legal and advisory support. Cravath, Swaine & Moore LLP is serving as legal counsel for Citi, while Citigroup Global Markets Inc. acts as the adviser. On the other hand, Apollo has enlisted Paul, Weiss, Rifkind, Wharton & Garrison LLP for legal counsel, with Sullivan & Cromwell LLP providing regulatory advice.
About Citi: A Global Banking Leader
Citi stands out as a premier banking partner for institutions requiring cross-border financial services. With operations in over 180 countries, Citi excels in wealth management, providing an array of financial products tailored for corporations, governments, and individuals alike.
About Apollo: Expertise in Alternative Asset Management
Apollo is recognized as a high-growth player in the global alternative asset management landscape. With an emphasis on producing excess returns across various risk-reward spectrums, Apollo is committed to providing innovative capital solutions to foster growth. As of mid-2024, Apollo has approximately $696 billion in assets under management, underscoring its prominent role in the market.
Frequently Asked Questions
What is the purpose of the Citi and Apollo partnership?
The partnership aims to establish a $25 billion private credit and direct lending program, enhancing access to private capital for corporate and sponsor clients.
How will this program benefit clients?
This program will provide clients with innovative private financing options, improving their access to essential funding resources for strategic transactions.
What expertise do Citi and Apollo bring to the partnership?
Citi brings extensive experience in banking and capital markets, while Apollo contributes its significant capital resources and assets under management to the collaboration.
What are the anticipated funding opportunities under this program?
The program is expected to finance approximately $25 billion in debt opportunities over several years, including corporate and financial sponsor transactions.
How are legal and advisory roles structured in this partnership?
Cravath, Swaine & Moore LLP is legal counsel for Citi, and Citigroup Global Markets Inc. serves as its adviser. Apollo is represented by Paul, Weiss, and Sullivan & Cromwell LLP for legal and regulatory matters, respectively.
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