The world's largest fund manager, BlackRock, is teaming up with Jio Financial Services, a subsidiary of Reliance Industries, to launch an assets management company in India, the two businesses announced. This comes five years after BlackRock and Hemendra Kothari's DSP group split ways.
Called Jio BlackRock, the two entities would hold equal share in the joint venture. Jio Financial and BlackRock are targeting an initial investment of $150 million (about £123 million) each in the JV, RIL said in a statement.
“The joint venture will launch operations after regulatory and statutory approvals. . . it would combine Jio Financial Services’ knowledge and resources and BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India, it said. The partnership would aim at “transforming India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India.”
According to Hitesh Sethia, president & CEO, Jio Financial, this would be an exciting partnership between Jio Financial and BlackRock, one of the largest and most respected asset management companies globally.
As of December 2022, BlackRock managed nearly $8. 6 trillion worth of assets globally, disclosures to the US SEC showed. That’s more than double BSE’s market capitalisation, which is nearly $3.7 trillion. “The partnership will leverage BlackRock’s deep expertise in investment and risk management, along with the technology capability and deep market expertise of (Jio Financial) to drive digital delivery of products,” Sethia said.