Global investment firm Carlyle and banking giant Citi have entered into a strategic collaboration to explore asset-backed financing and co-investment opportunities in the fast-growing fintech specialty lending sector.
The partnership formalizes a framework for both firms to exchange market intelligence and jointly pursue deals that support the expansion of fintech lenders through scalable and structured capital solutions, Carlyle said in a statement.
The agreement combines Carlyle’s expertise in credit and structured finance with Citi’s robust fintech investment platform, particularly its Spread Products Investment in Technologies (SPRINT) team, which focuses on venture equity investments in specialty finance and lending startups.
As fintech lenders continue to scale and evolve, demand for flexible asset-backed financing options has surged. The collaboration between Carlyle and Citi aims to address this need by providing tailored funding solutions across the capital structure.
By pooling capabilities in structuring, origination, and sector-specific insights, both firms intend to support the next generation of financial technology providers while capturing opportunities in the evolving private credit landscape.
Carlyle’s Asset-Backed Finance (ABF) team, part of its Global Credit platform, plays a central role in this initiative. The ABF group has deployed approximately $8 billion in private fixed income and structured transactions since 2021 and currently manages about $9 billion in assets as of March 31, 2025.
The team targets a broad client base, including specialty finance firms, asset managers, and originators of diversified loan portfolios.
For Citi, the collaboration underscores its strategy of integrating investment capabilities across its markets and innovation units.
The bank’s deep relationships in the fintech space, combined with its global financial infrastructure, are expected to complement Carlyle’s ability to structure large, customized financing packages.
The move reflects a broader trend among institutional investors to deepen their presence in private credit markets, particularly as traditional financing sources tighten and fintech firms seek alternative funding channels to sustain growth.
Carlyle reported $453 billion in assets under management as of March 2025, operating across private equity, global credit, and AlpInvest strategies, with a footprint spanning 29 offices worldwide.
Citi, which operates in over 180 countries, continues to expand its influence across capital markets, fintech, and institutional banking.