Citigroup and Apollo Global Management are teaming up in the fast-growing private credit market, agreeing to work together on $25 billion worth of deals over the next five years. The two Wall Street heavyweights have struck an exclusive partnership to arrange financings for corporate and private equity clients,

Citigroup (NYSE:C) and Apollo Global Management (NYSE:APO) are joining forces to form a landmark $25B private credit, direct lending program initially in North America, the Wall Street heavyweights said Thursday.

Citigroup Inc. C and Apollo Global Management Inc. APO have inked a deal for a subsidiary of Citigroup and certain affiliates of Apollo to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies.

Zelter joined Apollo in 2006 after more than a decade at Citigroup, where he had once served as the chief investment officer of a division that invested in private assets. Before that, he oversaw the bank’s global high-yield and leveraged finance business. Citigroup is a frequent underwriter of debt deals for Apollo’s private equity business.

Citi and Apollo said that they "expect strong client demand and maintain the flexibility to significantly expand the size of the program beyond the initial $25 billion."

Abu Dhabi sovereign investor Mubadala Investment Company will participate in a $25 billion private credit, direct lending programme announced by Citigroup and alternative asset manager Apollo. The programme will include participation from Mubadala as Apollo’s strategic partner,