Citi and LuminArx launch private credit solution
Citibank has partnered with alternative investment manager LuminArx Capital to launch a new tool for the private lending market.
The tool – which has been named Cinergy – will offer a range of private credit solutions for companies. LuminArx and its institutional partners plan to commit more than $2bn (£1.58bn) to Cinergy, while Citi’s Spread Products franchise will provide leverage solutions to expand its investment capacity.
“The private lending market is experiencing transformative growth, and we are pleased that Cinergy will enhance our ability to meet the capital needs of our clients,” said Mitali Sohoni, head of asset-backed financing at Citi.
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“Powered by LuminArx’s execution capabilities and the significant industry experience of its team, I believe Cinergy represents a truly differentiated offering.”
Cinergy will invest across multiple asset classes, including asset-backed credit and corporate debt across the capital structure.
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“The launch of Cinergy reflects our commitment to introducing innovative investment solutions and our focus on providing creative and bespoke financing opportunities to our partners,” said Gideon Berger, co-founder and chief executive of LuminArx.
“We are increasingly hearing from investors looking to capitalize on the growth of private credit in new and differentiated ways, and Cinergy provides a vehicle for achieving this that will be unique in the market.”
Last year, it was reported that Citigroup was in talks to roll out a new direct lending strategy in the early part of 2024, as part of its strategy to enter the fast-growing private credit market.
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