New JV expands BlackRock’s footprint in India
BlackRock has announced a new 50-50 joint venture with India’s Jio Financial Services (JFS) to introduce a new asset manager in the subcontinent.
The joint venture, Jio BlackRock, combines the respective strengths of these trusted brands “to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India”, it said.
The firms are targeting initial investment of around $220 million each in the joint venture. It will launch operations post receipt of regulatory and statutory approvals, and will have its own management team.
Rachel Lord, chair and head of APAC, BlackRock, observed that 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,” she said.
“We are very excited to be partnering with JFS to revolutionise India’s asset management industry and transform financial futures.”
Research from Goldman Sachs expects India will have the world’s second-largest economy by 2075. Presently, BlackRock India has almost 2,500 employees with offices across Mumbai, Bangalore and Gurgaon.
JFS chief executive and president, Hitesh Sethia, described the joint venture as a “truly transformational, customer-centric and digital-first enterprise.”
“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,” he said.
In 2018, BlackRock sold off its 40 per cent interest in DSP BlackRock, a joint venture with India’s DSP Group, citing inability to integrate this onto its technology and operating platform as a minority stakeholder.
Sharing the news of Jio BlackRock on LinkedIn, BlackRock chairman and chief executive, Larry Fink, termed the venture a major move for the world’s largest asset manager.
“We hold a shared vision to create better financial futures, and I am excited to see Jio BlackRock deliver our combined expertise and scale to unlock the power of investing for millions of people in India,” Fink said.
AUTHOR
Rhea Nath
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
