TSL Express Daily News

Citigroup Inc. (NYSE: C) and Apollo (NYSE: APO) announced that they have entered into an exclusive agreement for a subsidiary of Citi and certain affiliates of Apollo to form a landmark $25 billion 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 $25 billion 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 $25 billion.”

Apollo Co-President Jim Zelter the collaboration will allow Citi to enhance its client offerings while enabling Apollo to increase origination flow.

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.”

Citi is a banking partner for institutions “with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States.”

Citi does business in more than 180 countries and jurisdictions, “providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.”

Apollo is a high-growth, global alternative asset manager.

In their asset management business, they seek to provide their clients excess return at every point along the risk-reward spectrum “from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity.”