BlackRock BBLK, the world’s largest asset manager, is in talks with Mukesh Ambani-led Jio Financial Services Reliance Group’s JIOFIN to set up a private lending company, Bloomberg News (link) reported on Wednesday, citing people familiar with the matter.
The two companies will form a 50:50 joint venture to provide loans to companies ranging from large firms to startups if talks materialize, the report said, adding that a final decision about the venture has not yet been made.
BlackRock declined to comment, while Jio Financial did not immediately respond to a Reuters request for comment.
There is strong demand for private credit in India as a growing number of Indian alternative investment funds expand their business in the category (link), reflecting a pick-up in activity across Asia (link).
This would be the third joint venture between the US asset manager and the Indian financial services provider, after both companies announced plans to set up asset management and brokerage operations in India.
Earlier this month, the two companies received approval from India’s market regulator to act as co-sponsors and set up a mutual fund business in India.
