BlackRock, an asset management firm, and Jio Financial Services Ltd. have partnered to establish an asset management firm in India.
BlackRock has formed a strategic alliance with Mukesh Ambani’s financial services firm, Jio Financial Services. This allows the world’s largest money manager to establish a presence in the nation’s swiftly expanding asset management industry. According to a statement released by Jio Financial on Wednesday, the initial investment in the joint venture is $150 million from each company.
BlackRock And Jio Will Form A Partnership
Jio and BlackRock, who collectively managed $9.4 trillion in assets as of June’s end, will each invest up to $150 million in the 50-50 venture. Jio BlackRock will be the joint venture’s identity.
The announcement comes days after Jio Financial Services was separated from Reliance Industries; the company, which has yet to establish a presence in India’s swiftly expanding financial services market, has been valued at close to $20 billion by the markets.
“The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products,” said Hitesh Sethia, CEO of JFS.
The Asset Management Industry in India
In recent years, the asset management industry in India has expanded rapidly, with total assets under administration exceeding $440 billion, or 44.3 trillion Indian rupees.
According to the statement, investors in India would have ” tech-enabled access to affordable, innovative investment solutions” thanks to the “digital-first’ service.
With this new venture, BlackRock is making its second attempt to enter India’s swiftly expanding asset management market. After ten years of operation in India.
The American investment management firm exited in 2018 by selling its 40% stake to DSP Group. According to Rachel Lord, head of Asia-Pacific for BlackRock, India has a “enormously important opportunity” in the statement.
