In a major attempt to enter India’s fast developing asset management market, BlackRock, the biggest money manager in the world with $9.4 trillion in assets under management, has partnered with Jio Financial Services, the financial division of Indian billionaire Mukesh Ambani’s Reliance Industries Limited.
The two organizations intend to contribute up to $150 million each to the 50/50 joint venture, which will be known as “Jio BlackRock,” according to a statement issued on Wednesday. The partnership intends to establish a presence in India’s rapidly expanding asset management business and provide Indian investors with “tech-enabled access to affordable, innovative investment solutions” via a “digital-first” strategy.
BlackRock’s chairman and CEO, Larry Fink, said on his LinkedIn profile that the cooperation was a “major move” for the business. He stressed the importance of growing BlackRock’s presence in India and collaborating with Jio Financial Services to help millions of individuals there have access to the potential of investing.
According to Forbes, Mukesh Ambani, the founder and chairman of Reliance Industries, has a net worth of $90.6 billion, making him the wealthiest person in India. According to market share, the conglomerate is India’s biggest listed corporation.
The joint venture seeks to use Jio Financial Services’ extensive market knowledge and technical skills together with BlackRock’s investment and risk management experience to accelerate the digital distribution of investment products. Delivering scalable and cutting-edge investment solutions to the Indian market is the partnership’s main goal.
The statement was made not long after Jio Financial Services was separated from Reliance Industries, its parent firm. The establishment of the joint venture is dependent on regulatory clearances and normal closing conditions.
BlackRock has made previous attempts to get into the Indian asset management market. After operating for ten years, the American investment management company left the market in 2018 by selling partner DSP Group its 40% ownership in an asset management company.
The statement from BlackRock’s head of Asia-Pacific, Rachel Lord, praised India’s potential as a “enormously important opportunity” According to the Association of Mutual Funds in India, the assets under management of Indian mutual funds doubled to 44.39 trillion rupees ($542 billion) in the five years before to June 2023, demonstrating the sector’s explosive expansion.
Lord noted that the industry is being significantly changed by India’s growing prosperity, attractive demographics, and accelerating digital revolution. The strategic alliance between BlackRock and Jio Financial Services has the potential to transform the asset management sector in India, opening up new options for investors and advancing the monetary landscape of the nation.