Reliance’s Jio Financial Services, BlackRock tie up to launch India MF business
Called Jio BlackRock, the two entities would hold equal share in the joint venture. Jio Financial and BlackRock are targeting initial investment of $150 million (about Rs 1,230 crore) each in the JV, RIL said in 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.
After the global financial crisis, BlackRock had replaced Merill Lynch as the Indian partner in DSP group’s mutual fund business in India. The two parted ways in mid-2018. Jio Financial de-merged from its parent RIL last week. On Wednesday, Reliance Strategic Investments was renamed Jio Financial. The JV with BlackRock is the first major announcement from Jio Financial. The company is awaiting listing on the bourses.
According to Rachel Lord, chair & head of APAC, BlackRock, India represents an enormously important opportunity for the global assets management giant. “The convergence of rising affluence, favourable demographics, and digital transformation across industries is reshaping the market in incredible ways,” Lord was quoted in the release.
The Indian mutual fund industry manages about Rs 45 lakh crore across equity, debt and ETF schemes, AMFI data for June showed. Several top industry officials, including Sebi chairman Madhabi Puri Buch, have been positive about the MF industry’s growth prospects. In June, the Sebi chief had said that reaching the Rs 100-lakh-crore AUM mark target wasn’t far away.
