Citi and alternative investment manager LuminArx Capital Management have introduced a strategic financing vehicle in the private lending market, dubbed Cinergy.

Introduced by LuminArx Capital, Cinergy will provide companies, including Citi’s global client base, with a wide array of private credit solutions.

The offering will invest across multiple asset classes, such as asset-backed credit (commercial, consumer and residential) and corporate debt across the capital structure. 

LuminArx Capital Management and its global institutional partners plan to invest over $2bn of capital to support Cinergy. 

Besides, Citi’s Spread Products franchise will offer innovative leverage solutions to Cinergy to expand the latter’s investment capacity.

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.”

Cinergy will allow LuminArx Capital Management to access a range of private credit opportunities sourced by Citi through its global client network including its commercial banking division.

The strategic financing vehicle will also leverage Citi’s 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 capitalise 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.”

In December last year, Citi spearheaded a strategic investment round in Supra, a Colombian fintech company that facilitates cross-border payments for small and medium-sized businesses (SMBs).