New Delhi: BlackRock Inc., the world’s largest asset manager, is in talks with Mukesh Ambani‘s Jio Financial Services Ltd to set up a private credit venture in India. Its objective is to take advantage of the growing opportunities for direct lending in India.
This claim has been made in a Bloomberg report quoting sources. Both the companies will have 50-50 percent stake in it and it will give loans to big companies as well as startups. If this deal goes ahead, it will be the third venture between Reliance and America’s BlackRock. Earlier, both the companies have joined hands in asset management and stock broking business. India is a bright spot for private credit in Asia. Global companies like Apollo Global Management, Cerberus Capital Management LP and Verde Partners are rapidly expanding their operations in India. The reason for this is that the demand for funds of local companies in the country is continuously increasing. According to an EY report, private credit investment in India has reached a record $6 billion in the first half of 2024.
Mukesh Ambani is preparing to make a big bang in the financial sector, got the support of the world’s most powerful man.
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Sources said no final decision has been taken yet on the venture and the companies may still decide not to pursue the partnership. Spokespeople for BlackRock and Jio Financial declined to comment. Since the global financial crisis, the global private credit market has reached $1.7 trillion. This is why companies like Blackstone Inc. are playing big bets in India.
Celia Yan, head of APAC private credit at BlackRock, had said last month that there is an opportunity to provide credit to small and big companies in India. Jio Financial is headed by experienced banker K. It is in the hands of V. Kamath. The company already runs a shadow bank that offers home mortgages and credit against mutual fund investments. Earlier this year, BlackRock appointed Maheshwar Nataraj to lead its private credit business in India.
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Who is Larry Fink?
BlackRock CEO Larry Fink is considered the most powerful person in the world. This is because BlackRock manages more than $10 trillion in assets. This is about two and a half times the GDP of India and half the GDP of America. You can estimate the status of BlackRock from the fact that this company handles 10% of the total shares and bonds in the world.