Jio Financial, BlackRock form JV for asset management; to invest $150M each

Newly-demerged Jio Financial Services (JFS) and BlackRock, the world's largest asset manager, have announced to form a 50:50 joint venture—Jio BlackRock—to offer investment solutions to the Indian market. 

The entities are targeting an initial investment of $150 million each in the JV, which will launch operations post receipt of regulatory and statutory approvals. The company will have its own management team, it said in a statement. 

The new firm is aiming for a digital-first offering to democratise access to investment solutions for investors in India. “The partnership will introduce a new player to the India market with a unique combination of scope, scale, and resources,” it said. 

JFS, the demerged financial services unit of billionaire Mukesh Ambani-led conglomerate Reliance Industries Ltd, falls under the Group’s new plan to tap the growing demand for financial services in the country, including lending, insurance, digital broking, and asset management. 

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Expected to list on the bourses by October 2023, JFS is already among the top 50 companies with a market cap or valuation of Rs 1,66,000 crore, and is set to go head-on with major NBFCs and fintech businesses.

The new 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, Hitesh Sethia, President and CEO of JFS, said. 

Rachel Lord, Chair and& Head of APAC, BlackRock, added, “India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”

The partnership marks the re-entry of BlackRock into India’s asset management industry. In 2018, the global investment management firm ended its joint venture with DSP Group in the mutual fund, asset management and alternate investment fund businesses.