Citigroup's Bold Push Into Private Markets: A Long-Term Growth Driver?

Citigroup Inc. C is broadening its presence in the fast-growing private lending sector through a series of high-profile partnerships aimed at diversifying revenues and enhancing client engagement across alternative asset classes.

In sync with this, in September 2025, Citigroup unveiled an $80-billion customized portfolio initiative with BlackRock Inc. BLK, offering clients tailored exposure across both public and private markets. The collaboration leverages BlackRock’s asset management capabilities and Citigroup’s global distribution network to deliver bespoke portfolio solutions for institutional and wealth clients.

In June 2025, Citigroup partnered with The Carlyle Group to expand asset-based private credit opportunities within the fintech and specialty lending space. The alliance combines Carlyle’s structuring expertise with Citigroup’s Spread Products Investment in Technologies team and extensive market reach to co-invest in customized financing solutions for innovative fintech platforms and their originated assets.

In September 2024, Citigroup joined forces with Apollo Global Management to establish a $25-billion private credit direct-lending program, initially targeting North America with the potential for global expansion. The program unites Citigroup’s corporate banking and origination capabilities with Apollo’s capital resources to address increasing demand for flexible, large-scale corporate financing alternatives.

Together, these initiatives reflect Citigroup’s concerted effort to deepen its foothold in private markets, diversify its revenue base, and offer clients broader access to private credit and hybrid investment opportunities that bridge traditional and alternative financing channels. These initiatives have begun to translate into stronger performance, as evidenced by the recent quarterly performances. Citigroup’s private bank and wealth-management revenues rose 14% and 17% year over year, respectively, in the first nine months of 2025, driven by higher investment-fee income and broader client activity.

By focusing on private credit, Citigroup aims to boost profitability and reach its 10–11% return on tangible common equity target by 2026.

Steps By Other Firms to Make Private Markets More Accessible

Of late, private markets have been turning out to be a lucrative business option for many financial firms. Goldman Sachs GS and T. Rowe Price TROW have formed a partnership to expand retirement and wealth solutions across public and private markets. Goldman will invest $1 billion for a 3.5% stake in T. Rowe, gaining access to its retirement-focused clients. The collaboration will roll out private market access, Target-Date Strategies (mid-2026), model portfolios, multi-asset offerings and advisor-managed accounts. 

The Goldman-T. Rowe initiative marks a significant step in bringing alternatives into mainstream retirement and wealth planning. The partnership will unfold in phases, starting with high-net-worth clients in 2025 and expanding to retirement savers in 2026. Together, the companies will be able to reshape retirement portfolio management by balancing traditional strategies with the growing demand for exposure to private markets.

C’s Price Performance, Valuation & Estimates

Shares of Citigroup have gained 48.5% year to date compared with the industry’s growth of 33.4%.

Price Performance

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.65X, below the industry’s average of 14.78X.

Price-to-Earnings F12M

The Zacks Consensus Estimate for C’s 2025 and 2026 earnings implies year-over-year rallies of 27.4% and 30.1%, respectively. The estimates for both years have been revised upward over the past seven days.

Estimate Revision Trend

Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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