Citi and LuminArx Capital announced the launch of Cinergy, a strategic financing vehicle in the rapidly growing private lending market.

Launched by LuminArx Capital, Cinergy will offer a broad range of private credit solutions to companies, including Citi’s global client base. It will invest across multiple asset classes, including asset-backed credit (commercial, consumer and residential) and corporate debt across the capital structure.

To support Cinergy, LuminArx and its global institutional partners intend to commit more than $2 billion of capital. In addition, Citi’s leading Spread Products franchise will provide innovative leverage solutions to Cinergy to 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.”

Cinergy will enable LuminArx to access a range of private credit opportunities sourced by Citi through its extensive global client network – including from its commercial banking division – and utilize Citi’s distinct 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.”

Source: Citi