Global investment firm Carlyle and Citi have entered into a strategic collaboration to pursue asset-backed financing opportunities in the fast-growing fintech specialty lending sector, as both firms deepen their presence in private credit markets.
The partnership establishes a formal framework for the exchange of market intelligence and the pursuit of co-investment and joint financing deals.
The collaboration leverages Carlyle’s structuring and credit expertise alongside Citi’s extensive fintech investment footprint, particularly through its Spread Products Investment in Technologies (SPRINT) team—a venture equity investor focused on fintech-enabled lenders.
The alliance comes amid heightened demand for flexible and scalable financing solutions from fintech lenders, which increasingly require asset-backed structures to support their expansion as they evolve into more mature, institutional-grade platforms.
By combining Carlyle’s asset-backed finance capabilities with Citi’s network and experience in capital markets and technology-driven finance, the firms aim to identify and capitalize on new investment opportunities across the private credit landscape.
Carlyle’s Asset-Backed Finance (ABF) unit, part of its Global Credit platform, has deployed approximately $8 billion since 2021 and manages around $9 billion in assets as of March 31, 2025.
The ABF team focuses on originating and structuring financing solutions for a range of clients, including specialty finance companies, asset managers, and banks that manage diversified pools of financial and real assets.
Citi’s participation complements this strategy with its broad institutional reach and deep connectivity across capital markets and fintech ecosystems.
The integration of its SPRINT team with its asset-backed finance operations is designed to meet the capital structure needs of emerging fintech leaders across both equity and credit domains.
The partnership reflects a broader trend of increased collaboration between traditional financial institutions and alternative investment managers as they seek to harness innovation in financial technology while deploying capital efficiently.
Both firms view fintech specialty lending as a high-growth segment within private credit, particularly as digital lenders scale operations and require diversified capital sources.
As fintech platforms continue to disrupt traditional financial services, the Carlyle-Citi collaboration aims to serve as a key conduit for bridging institutional capital with innovative lending models.
The alliance positions both firms to offer comprehensive financing solutions that align with the evolving needs of fintech-driven originators and borrowers.
Business News Asia