BlackRock in Negotiations with Jio Financial for private credit Partnership
Table of Content
- BlackRock and Jio Financial’s Potential Partnership
- The Rise of Private Credit in India
- Opportunities for Lending in India
- The Future of Private Credit in India
BlackRock, the world’s largest asset manager, is in discussion with Jio Financial Services, a company under the Mukesh Ambani-led Reliance Group, to set up a private credit venture, according to a Bloomberg News reported on Wednesday, citing sources familiar with the matter.
The two companies are discussing a potential 50-50 joint venture to provide loans to a range of businesses, from large companies to startups. While tha talks are ongoing, a final decision on the partnership yet hasn’t been reached.
India has been experiencing a strong demand for private credit, with an increasing number of Indian alternative investment funds expanding their operation in these sectors. This trend pick-up a broader increase in private credit activities across Asia.
BlackRock declined to provide a comment, while Jio Financial did not immediately respond a Reuters request for comment.
This would mark the third Joint venture between the U.S.-based asset management firm and the Indian financial services company, following their previous collaborations to establish asset management and broking businesses in India.
The global private credit market, now valued at $1.7 trillion, has expended significantly since the global financial crisis, with lenders like Blackstone Inc. are persuing oppurtunities in the markets like India. According to Celia Yan, BlackRock’s Head of APAC Private Credit, there are plenty of opportunities in India to provide financing to both large enterprises with multiple subsidiaries and young entrepreneurs funding start-ups, as he mentioned to reporters last month.
Earlier this month, the companiesreceived approval from the country’s markets regulator to act as co-sponsors and establish a mutual fund business in the country.
Jio Financial, led by veteran banker K.V. Kamath, currently operates a shadow bank that provides home mortgages and loans against mutual fund investments. Earlier this year, BlackRock appointed Maheshwar Nataraj to lead its private credit business in the country.
