BlackRock and Jio Financial plan private credit venture

admin
admin

BlackRock and Jio Financial plan private credit venture

BlackRock, the world’s largest asset manager, is in advanced talks with Jio Financial Services to establish a private credit venture in India. This potential 50-50 joint venture would focus on offering direct lending to a wide range of businesses, including large corporations and startups. India has emerged as a key market for private credit, with investments in the sector reaching a record $6 billion in the first half of 2024. This growth has attracted global private credit firms like Apollo Global Management and Cerberus Capital Management.

BlackRock sees significant opportunities in India’s rapidly expanding private credit market, which is driven by increasing demand from both established enterprises and new startups. The proposed joint venture marks BlackRock’s third collaboration with Jio Financial, following successful ventures in asset management and stockbroking. Jio Financial, under the leadership of veteran banker K.V. Kamath, already operates in lending, offering home mortgages and loans against mutual fund investments.

The partnership comes as global private credit markets continue to balloon, presenting lucrative opportunities for asset managers like BlackRock. If the venture proceeds, it would allow BlackRock and Jio Financial to capitalize on the growing demand for private credit in India, providing flexible financing options to businesses across various sectors.

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *