Aug 4 (Reuters) - Citigroup ( C/PN ) has appointed Aashish

Dhakad as the head of its private credit origination division in

North America, according to an internal memo seen by Reuters on

Monday, as banks vie for a larger share of the lucrative private

credit market.

Dhakad, with an industry experience spanning two decades,

will join the third largest U.S. lender in October. He most

recently worked at investment manager Ares Management ( ARES ).

Private credit refers to loans provided by non-bank lenders

that are not subject to the same level of regulations as banks.

These loans are typically extended to riskier borrowers or

companies pursuing large buyouts with debt.

Once seen as a threat to banks, private credit firms have

increasingly partnered with traditional lenders over the past

year to gain more customers. Banks help them source customers

more easily and earn a fee without putting their own capital at

risk.

In September 2024, Citi and investment firm Apollo Global

partnered for a $25 billion private credit and direct

lending program.

Dhakad, who has also worked at Bank of America ( BAC ) for a

decade, will be based in New York in the new role with Citi.

"The growth in corporate direct lending beyond traditional

acquisition financing presents a massive opportunity and we are

uniquely situated to seize it," the Citi memo said.

The move marks the Wall Street bank's effort to expand its

presence in the private credit market.

Private credit firms have also widened their focus in recent

years, moving beyond traditional buyout financing to areas such

as investment-grade corporate lending, asset-backed deals and

sports-related investments.