Citi launches $2B private lending solution with LuminArx Capital

The two firms' capabilities aim to provide a differentiated offering.

The significant opportunity in the growing private credit market has prompted the launch of a new strategic financing vehicle by Citi and global alternative investment manager Luminarx Capital.

Cinergy will leverage a $2 billion commitment from Luminarx and global institutions to enable Citi to offer a new capability to its clients, but it will also be available to other companies. It will invest in multiple strategies including asset-backed credit and corporate debt.

Citi’s Spread Products franchise will provide leverage solutions that will expand Cinergy’s 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. “Powered by LuminArx’s execution capabilities and the significant industry experience of its team, I believe Cinergy represents a truly differentiated offering.”

Luminarx will benefit via Cinergy from access to private credit opportunities sourced by Citi along with the Wall Street firm’s financing capabilities.

“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 CEO 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.”

A recent report from private credit platform Percent and Coalition Greenwich shows that 63% of respondents – largely asset managers, hedge funds and wealth managers in family offices and RIAs – plan to increase private credit allocations. Half have increased their exposure in the past year.