Big banks and private equity giants are joining forces to create new Wall Street super groups, with the goal of capturing a bigger slice of the $1.7 trillion private credit market.
The newest team to emerge is an alliance between Citigroup (C) and Apollo Global Management (APO), which on Thursday announced a $25 billion private credit fund focused on direct lending. It is the biggest lending partnership yet between a private financial institution and a big bank.
“This is a win-win arrangement,” Apollo Co-President Jim Zelter said in a press release. (Note: Apollo is the parent company of Yahoo Finance).
Citigroup’s head of banking and executive vice chair, Viswas Raghavan, said the bank and private equity giant will “provide clients with a range of options to meet their evolving financing needs.”
The joint venture lets Citi’s dealmakers and capital markets pros keep their…
