Citibank plans to deploy more capital as it broadens the focus on India, Citi head of banking and executive vice chair Viswas Raghavan told Shilpy Sinha, George Smith Alexander & Sruthijith KK in an interview. Raghavan, 58, oversees Citi’s corporate, commercial and investment banking businesses globally. He said Indian companies are looking at international deals and Citi will be there to support them with advice and capital. Since joining Citi last year from JP Morgan, where he led global investment banking, Raghavan has been expanding the firm’s team across key markets riding the deal wave. Edited excerpts.
Global M&A activity is at a high despite macroeconomic and geopolitical volatility. What’s driving this, and are you surprised by the momentum?
I wouldn’t say I’m surprised by it. There are several secular themes emerging. One is the responsibility that comes with rich valuations. If I don’t show growth, that valuation gets taken away from me, and investors vote with their feet. So, companies are being forced to act.
Then you have the trade war and supply chain, forcing companies to rethink their ‘make in America’ or make wherever to reduce friction costs. In Europe, where growth is moribund and anaemic, companies are looking to the US, which remains the key market. If you look at liquidity, more than two-thirds of the world’s market capitalisation and over 50% of the world’s profits are hoovered by US companies. All of that is surplus.
Then, you have a trade deficit and you have a $30 trillion… debt burden but that is kind of the give and take.
Then, there is private equity and financial sponsors have an abundance of capital that must be put to work. Waiting is never a scenario. Even with tariffs at 20–25%, companies are simply absorbing or passing on the costs. When tariffs reach 50%, they start rethinking — do we friendshore, nearshore, onshore, they are talking, what is my shoring strategy to basically continue to export to one of the largest markets in the world.
Are public markets now competing with private equity or even pricing them out in some transactions?
Not necessarily, because the two can absolutely coexist. You can argue the same thing about the US market; it's not just an India phenomenon. We look at the multiples in the US market, they are incredibly positive. Also, private equity’s having the time of their life. We recently advised Boeing on the sale of Jeppesen. Thoma Bravo, a West Coast tech-focused PE firm bought the asset, and there were over 20 sponsors competing for it. Apollo and Blackstone provided private credit financing to that deal through our $25-billion private credit partnership. That could easily have been financed through public markets, but Boeing chose the private route because of the certainty and confidentiality it offered.
So, public markets and private capital will coexist. They just have different drivers. It’s like public debt and private credit both serve distinct purposes. Right now, there is just a wall of liquidity chasing every investment opportunity.
That wall of liquidity you mention, doesn’t that usually end badly?
Look, we have had this wall of liquidity for a long time. It really began post-Covid, with all the QE (quantitative easing) and the excess liquidity injected into the system. If you think about it, since the financial crisis, we have had almost a decade-and-a-half of positive markets. Sure, there will be rallies, corrections, and volatility—that’s part of life. Will there be a recession at some point? Yes. There have been many in the past. The key is how you navigate it, how soft the landing is, and how well you manage through it.
You mentioned a debt maturity wall. How significant is that for markets?
It’s substantial. There’s roughly $1 trillion of high-grade debt maturing every year, and close to $250 billion of high-yield debt due by 2027–28. All of that needs to be refinanced. So, even with volatility, there’s always a steady pipeline of corporate finance activity. We just advised Blackstone and TPG on their $18-billion acquisition of Hologic in the healthcare space and we are financing that as well. So, the momentum in deals continues.
How do you see the Indian IPO market over the next year?
Exceptionally strong. The pipeline is strong this year itself. Over the next 12 months, I expect that record to be surpassed. Even globally, or in the US in particular, the IPO pipeline is very, very strong. What you’ve seen so far in the US is a lot of IPOs in technology and digital assets—crypto, digital assets in general. There’s a reason for that. Those transactions are easier to get done in a tariff world. If you’re a traditional company with a cost of goods sold model exposed to tariffs or supply chain disruption, it’s hard to give forward guidance with certainty. So, you’ve seen more IPOs in spaces where those risks are easier to quantify, and fewer in the traditional analogue sectors.
In India, foreign banks such as Deutsche, Barclays and JP Morgan have been more active in private credit. Citi has not been as visible.
Our global credit book is one of the largest on the street — around $400 billion. So, in terms of appetite, capacity, and ability to lend, we are absolutely there. Second, we have desks that can originate, underwrite and manage credit both as principal and as agent. We have a $25-billion joint venture with Apollo… it is sort of exclusive. For example, the Boeing deal —Blackstone and Apollo came alongside each other with us.
Which regions and sectors are the biggest focus for growth?
North America remains the global growth engine. Within that, tech and healthcare are top priorities and we will be number one in healthcare globally. Tech is also showing incredible progress. Consumer is another big opportunity, driven by new-age, digital-first brands. Internationally, we’re investing more in the UK and Germany. The Middle East is in a golden era; Saudi and the UAE are booming. Japan is also getting interesting, with companies restructuring and private equity activity picking up.
How do India and Asia fit into this global plan?
India is a big focus area. Citi is a powerhouse here, and I’m personally invested in this market. I grew up here. Every deal matters. India is personal and it’s going to be fun. Japan is also turning a corner with strong corporate activity. Across Asia, this is going to be a very exciting decade.
Will Citi invest more capital in India?
Absolutely. We will, you know, as I said, we will deploy capital wherever the action is. Indian companies are also getting ambitious. They are looking at deals of scale and we will be there for them with advice, with capital. We're happy to bridge their ambitions. The scale and the scope of these ambitions are also truly global. In terms of… crossborder deals and the like, I think Indian companies now both have the currency and the wherewithal to really dream big. And, we are entirely, entirely committed to that.
Does that mean Indian companies are looking at more international deals?
They are, both organically and internationally; they always have. When you look at relative valuations, their growth, ambitions, etc, absolutely. Also, domestic consolidation, with RBI (Reserve Bank of India) easing guidelines for acquisitions.
Indian banks will also be allowed to fund M&As. How are you looking at this development?
Basically, more firepower, bigger your ambitions. So, you're not beholden just to an overseas bank. You could have an Indian bank in the broader banking group. In many cases, Indian banks know the companies better, can lean in faster, and partner incredibly well with us.
How do you compare AI to previous technological shifts like the dotcom boom?
Look at the scale of the pre-AI, dotcom, post-dotcom, internet wave and where it got to. Ecommerce as a channel was entirely driven by the internet. Now imagine the internet on steroids—that’s AI. The one difference you feel is with the internet, the early adopters or the early winners were not the endgame winners. Earlier there was AOL, Netscape and all..
Today, the entire landscape with none of those guys around is different. Here, the early adopters are all incredibly deeppocketed. They can afford the R&D. So, there is a very high chance that many of the early adopters are late-stage winners. And, as a result, what you are seeing is that valuation, the benefit of the doubt is being given in that.
AI is bringing immense efficiency, but what does it mean for the workforce and the essence of banking as a people-driven business?
AI brings incredible efficiency. But at the end of the day, banking is a business of trust. You can automate memos, but when someone gives you business, they look you in the eye. It’s about the confidence that you will deliver and stand by them. That human trust can’t be replaced. Of course, it will raise questions around workforce and skills, like the internet did. I can give you all the investment memos you want. But when you give me the business, you look me in the eye. It matters because, you know, you are not giving me the business based on the quality of my investment memo. It is your innate comfort and confidence that I will deliver for you. And I will be there for you when it goes well. And more importantly, I'll be there for you when it does not.
Global M&A activity is at a high despite macroeconomic and geopolitical volatility. What’s driving this, and are you surprised by the momentum?
I wouldn’t say I’m surprised by it. There are several secular themes emerging. One is the responsibility that comes with rich valuations. If I don’t show growth, that valuation gets taken away from me, and investors vote with their feet. So, companies are being forced to act.
Then you have the trade war and supply chain, forcing companies to rethink their ‘make in America’ or make wherever to reduce friction costs. In Europe, where growth is moribund and anaemic, companies are looking to the US, which remains the key market. If you look at liquidity, more than two-thirds of the world’s market capitalisation and over 50% of the world’s profits are hoovered by US companies. All of that is surplus.
Then, you have a trade deficit and you have a $30 trillion… debt burden but that is kind of the give and take.
Then, there is private equity and financial sponsors have an abundance of capital that must be put to work. Waiting is never a scenario. Even with tariffs at 20–25%, companies are simply absorbing or passing on the costs. When tariffs reach 50%, they start rethinking — do we friendshore, nearshore, onshore, they are talking, what is my shoring strategy to basically continue to export to one of the largest markets in the world.
Are public markets now competing with private equity or even pricing them out in some transactions?
Not necessarily, because the two can absolutely coexist. You can argue the same thing about the US market; it's not just an India phenomenon. We look at the multiples in the US market, they are incredibly positive. Also, private equity’s having the time of their life. We recently advised Boeing on the sale of Jeppesen. Thoma Bravo, a West Coast tech-focused PE firm bought the asset, and there were over 20 sponsors competing for it. Apollo and Blackstone provided private credit financing to that deal through our $25-billion private credit partnership. That could easily have been financed through public markets, but Boeing chose the private route because of the certainty and confidentiality it offered.
So, public markets and private capital will coexist. They just have different drivers. It’s like public debt and private credit both serve distinct purposes. Right now, there is just a wall of liquidity chasing every investment opportunity.
That wall of liquidity you mention, doesn’t that usually end badly?
Look, we have had this wall of liquidity for a long time. It really began post-Covid, with all the QE (quantitative easing) and the excess liquidity injected into the system. If you think about it, since the financial crisis, we have had almost a decade-and-a-half of positive markets. Sure, there will be rallies, corrections, and volatility—that’s part of life. Will there be a recession at some point? Yes. There have been many in the past. The key is how you navigate it, how soft the landing is, and how well you manage through it.
You mentioned a debt maturity wall. How significant is that for markets?
It’s substantial. There’s roughly $1 trillion of high-grade debt maturing every year, and close to $250 billion of high-yield debt due by 2027–28. All of that needs to be refinanced. So, even with volatility, there’s always a steady pipeline of corporate finance activity. We just advised Blackstone and TPG on their $18-billion acquisition of Hologic in the healthcare space and we are financing that as well. So, the momentum in deals continues.
How do you see the Indian IPO market over the next year?
Exceptionally strong. The pipeline is strong this year itself. Over the next 12 months, I expect that record to be surpassed. Even globally, or in the US in particular, the IPO pipeline is very, very strong. What you’ve seen so far in the US is a lot of IPOs in technology and digital assets—crypto, digital assets in general. There’s a reason for that. Those transactions are easier to get done in a tariff world. If you’re a traditional company with a cost of goods sold model exposed to tariffs or supply chain disruption, it’s hard to give forward guidance with certainty. So, you’ve seen more IPOs in spaces where those risks are easier to quantify, and fewer in the traditional analogue sectors.
In India, foreign banks such as Deutsche, Barclays and JP Morgan have been more active in private credit. Citi has not been as visible.
Our global credit book is one of the largest on the street — around $400 billion. So, in terms of appetite, capacity, and ability to lend, we are absolutely there. Second, we have desks that can originate, underwrite and manage credit both as principal and as agent. We have a $25-billion joint venture with Apollo… it is sort of exclusive. For example, the Boeing deal —Blackstone and Apollo came alongside each other with us.
Which regions and sectors are the biggest focus for growth?
North America remains the global growth engine. Within that, tech and healthcare are top priorities and we will be number one in healthcare globally. Tech is also showing incredible progress. Consumer is another big opportunity, driven by new-age, digital-first brands. Internationally, we’re investing more in the UK and Germany. The Middle East is in a golden era; Saudi and the UAE are booming. Japan is also getting interesting, with companies restructuring and private equity activity picking up.
How do India and Asia fit into this global plan?
India is a big focus area. Citi is a powerhouse here, and I’m personally invested in this market. I grew up here. Every deal matters. India is personal and it’s going to be fun. Japan is also turning a corner with strong corporate activity. Across Asia, this is going to be a very exciting decade.
Will Citi invest more capital in India?
Absolutely. We will, you know, as I said, we will deploy capital wherever the action is. Indian companies are also getting ambitious. They are looking at deals of scale and we will be there for them with advice, with capital. We're happy to bridge their ambitions. The scale and the scope of these ambitions are also truly global. In terms of… crossborder deals and the like, I think Indian companies now both have the currency and the wherewithal to really dream big. And, we are entirely, entirely committed to that.
Does that mean Indian companies are looking at more international deals?
They are, both organically and internationally; they always have. When you look at relative valuations, their growth, ambitions, etc, absolutely. Also, domestic consolidation, with RBI (Reserve Bank of India) easing guidelines for acquisitions.
Indian banks will also be allowed to fund M&As. How are you looking at this development?
Basically, more firepower, bigger your ambitions. So, you're not beholden just to an overseas bank. You could have an Indian bank in the broader banking group. In many cases, Indian banks know the companies better, can lean in faster, and partner incredibly well with us.
How do you compare AI to previous technological shifts like the dotcom boom?
Look at the scale of the pre-AI, dotcom, post-dotcom, internet wave and where it got to. Ecommerce as a channel was entirely driven by the internet. Now imagine the internet on steroids—that’s AI. The one difference you feel is with the internet, the early adopters or the early winners were not the endgame winners. Earlier there was AOL, Netscape and all..
Today, the entire landscape with none of those guys around is different. Here, the early adopters are all incredibly deeppocketed. They can afford the R&D. So, there is a very high chance that many of the early adopters are late-stage winners. And, as a result, what you are seeing is that valuation, the benefit of the doubt is being given in that.
AI is bringing immense efficiency, but what does it mean for the workforce and the essence of banking as a people-driven business?
AI brings incredible efficiency. But at the end of the day, banking is a business of trust. You can automate memos, but when someone gives you business, they look you in the eye. It’s about the confidence that you will deliver and stand by them. That human trust can’t be replaced. Of course, it will raise questions around workforce and skills, like the internet did. I can give you all the investment memos you want. But when you give me the business, you look me in the eye. It matters because, you know, you are not giving me the business based on the quality of my investment memo. It is your innate comfort and confidence that I will deliver for you. And I will be there for you when it goes well. And more importantly, I'll be there for you when it does not.
