BlackRock has teamed up with the financial arm of India's tycoon Mukesh Ambani, which has been referred to as "a major move." Both firms have said they will each invest up to $150 million in the joint 50-50 venture, revealed in a statement on Wednesday. The venture, called Jio BlackRock, "will place the unified power and magnitude of both businesses in the hands of countless investors in India," the statement added.
BlackRock, which held $9.4 trillion in assets under management as of June, will collaborate with Jio Financial Services on a 50-50 venture by jointly investing up to $150 million. This marks a significant move for the world's leading money manager, allowing them to establish themselves in India's rapidly growing asset management industry. The partnership will be known as Jio BlackRock, announced in a statement released Wednesday.
Prominent business tycoon Mukesh Ambani is the founder and chairman of the Indian conglomerate Reliance Industries; his estimated net worth being $90.6 billion, earning him the title of India's richest man on the Forbes list. Commenting on the joint venture on his LinkedIn page, Larry Fink, Chairman and CEO of BlackRock said, “Today marks a major move for BlackRock as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services, a company built by Reliance Industries Limited.”
Fink commented that the partnership would bring together their respective know-how and resourcefulness to make investment accessible for countless individuals in India.
Only days after it was spun off from its parent company Reliance Industries, Jio Financial Services announced a partnership to offer "tech-enabled access" to affordable and innovative investments for India's investors. The services will be "digital-first", according to a statement from JFS. Hitesh Sethia, CEO of Jio Financial Services, stated that the venture will leverage BlackRock's knowledge of investment and risk management with the technology and market insight of JFS, and drive digitally-delivered products. The start of this joint venture is subject to customary closing conditions and necessary regulatory approvals.
BlackRock's latest move is a second effort to break into India's thriving asset management industry. In the past, the US investment management firm was in the Indian market for about a decade, but eventually sold its 40% stake in a joint project with partner DSP Group. Rachel Lord, head of Asia-Pacific for BlackRock, commented on India's significance and said that it posed an "enormously important opportunity." According to the Association for Mutual Funds in India, assets under management for Indian mutual funds have doubled in the five years to June of 2020, reaching 44.39 trillion rupees ($542 billion). Lord highlighted that rising affluence, demographics and digitalization have been reshaping India's industry in "incredible ways," and that the new partnership will result in a "revolution" for the asset management realm.
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