US-based investment banking company Citigroup and alternative investment manager LuminArx Capital have announced Cinergy, a strategic financing vehicle in the private lending market.
Launched by LuminArx Capital, Cinergy is intended to provide a wide range of private credit solutions to companies, including Citi’s global client base.
It will invest across multiple asset classes, including asset-backed credit, comprising commercial, consumer and residential, and corporate debt across the capital structure.
Citi asset-backed financing head Mitali Sohoni said: “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.
“Powered by LuminArx’s execution capabilities and the significant industry experience of its team, I believe Cinergy represents a truly differentiated offering.”
LuminArx and its global institutional partners are planning to commit more than $2bn of capital to support the private financing vehicle.
In addition, Citi’s Spread Products franchise will also provide innovative leverage solutions to expand Cinergy’s investment capacity.
Cinergy will allow LuminArx to access a wide range of private credit opportunities sourced by Citi, through its extensive international client network, and use its distinct financing capabilities.
LuminArx co-founder and CEO Gideon Berger said: “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.
“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.”
LuminArx Capital Management is an international alternative investment manager focused on Special Situations investing to provide advanced, flexible, and strategic capital solutions.
The company targets consistent returns across market environments while mitigating downside risks, with upside participation and low correlation to traditional markets.
LuminArx leverages a diverse ecosystem of relationships across banks, corporations, governments, and insurance companies, and partners with institutional investors worldwide.
