jio blackrock deal: BlackRock in talks with Jio Financial Services for India private credit venture #IndiaFinance

BlackRock Inc., the world’s largest asset manager, is in talks with billionaire Mukesh Ambani’s Jio Financial Services Ltd. to set up a private credit venture, aiming to tap the expanding direct lending opportunities in India, according to people familiar with the matter.

The 50-50 joint venture will lend to businesses ranging from large companies to startups, the people said, asking not to be identified as the information is not public. If the companies decide to proceed, it will be the New York-based firm’s third venture with the firm controlled by the richest Asian after they joined forces to start asset management and stock broking businesses in the country.

India has been a bright spot for private credit in Asia, with global firms like Apollo Global Management, Cerberus Capital Management LP and Varde Partners stepping up their operations, lured by the increased funding needs of local firms. Private credit investments in the South Asian nation in the first half of 2024 soared to a record $6 billion, according to 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 people said. Spokespersons for BlackRock and Jio Financial declined to comment.

With the $1.7 trillion private credit market ballooning globally since the global financial crisis, lenders including Blackstone Inc. are chasing growth in markets like 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 told reporters 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.