BLACKROCK, the world’s largest asset manager, is in talks with billionaire Mukesh Ambani’s Jio Financial Services to set up a private-credit venture, aiming to tap the expanding direct lending opportunities in India, sources said.
The 50:50 joint venture will lend to businesses ranging from large companies to startups, they added, asking not to be identified as the information is not public.
If the companies decide to proceed, it will be the New York-based company’s third venture with the firm controlled by the richest Asian, after they joined forces to start asset management and stockbroking businesses in the country.
India has been a bright spot for private credit in Asia, with global companies such as Apollo Global Management, Cerberus Capital Management and Varde Partners stepping up their operations, lured by the increased funding needs of local firms.
Private-credit investments in the South Asian nation soared to a record US$6 billion in the first half of 2024, indicated a report by EY.
There is no final decision on the venture and the companies may still decide not to go ahead with the partnership, the sources added. Spokespersons for BlackRock and Jio Financial declined to comment.
With the US$1.7 trillion private-credit market ballooning globally since the global financial crisis, lenders including Blackstone are chasing growth in markets such as India.
There are openings in India to lend to large enterprises with multiple subsidiaries, as well as young entrepreneurs funding start-ups, Celia Yan, BlackRock’s head of Apac private credit said last month.
Jio Financial, helmed by veteran banker K V Kamath, already runs a shadow bank that offers home mortgages and loans against mutual fund investments. Earlier this year, BlackRock appointed Maheshwar Nataraj to lead its private-credit business in the country. BLOOMBERG
