BlackRock in talks with India’s Jio Financial for private credit venture, Bloomberg News reports

BENGALURU (Reuters) – BlackRock (NYSE:), the world’s biggest asset manager, is in talks with Mukesh Ambani-led Reliance Group firm Jio Financial Services to set up a private credit venture, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The two companies will form a 50-50 joint venture to lend to businesses ranging from large companies to startups, if talks materialise, the report said, adding that a final decision on the venture was yet to be made.

BlackRock declined to comment, while Jio Financial did not immediately respond a Reuters request for comment.

India is seeing strong demand for private credit with a growing number of Indian alternative investment funds expanding their businesses in the category, mirroring a pick-up in activity across Asia.

This would be the third JV between the U.S.-based asset management firm and the Indian financial services company, after they announced ventures to start asset management and broking businesses in India.

Earlier this month, the companies got approval of the country’s markets regulator to act as co-sponsors and set up a mutual fund business in the country.