Jio Financial Services and BlackRock Announce Joint Venture for Asset Management

Jio Financial Services Ltd, the demerged financial lending division of Reliance Industries Ltd, and BlackRock, the world’s largest asset manager, have formed a partnership to establish an asset management company. They plan to invest a total of USD 300 million in this venture. 

BlackRock the largest asset manager in the world, is poised to collaborate with Reliance Industries Ltd (RIL), India’s largest company. This marks BlackRock’s return to the country after exiting in 2018. The US-based investment giant is forming a 50:50 joint venture with Jio Financial Services (JFS) to establish an asset management business, as announced by both companies on Wednesday evening. 

Jio BlackRock brings BlackRock’s deep expertise and talent in investment management, risk management, product excellence, and access to technology, operations, scale, and intellectual capital around markets, while JFS contributes local market knowledge, digital infrastructure capabilities, and robust execution capabilities. Together, the partnership will introduce a new player to the Indian market with a unique combination of scope, scale, and resources,” said JFS in a statement. 

Furthermore, this collaboration will signal the return of Larry Fink, the Chairman of BlackRock and a prominent advocate for environmentally responsible investing, to India. It comes after he departs from his long-term partnership with Hemendra Kothari of DSP. 

BlackRock manages approximately USD 11 trillion, which accounts for roughly 7% of the world’s total financial assets. 

In a joint statement on Wednesday, they announced that their joint venture, named “Jio BlackRock,” aims to provide technology-enabled access to affordable and innovative investment solutions for millions of investors in India. 

Both partners have decided to invest USD 150 million each in the joint venture, positioning it as the 44th player in the Indian mutual fund industry, which currently stands at Rs 44.39 trillion. The industry is presently dominated by SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund. 

The joint venture will launch operations post-receipt of regulatory and statutory approvals. The company will have its own management team. 

RIL Ltd on Wednesday said the name of its demerged entity Reliance Strategic Investments has been changed to Jio Financial Services with effect from July 25. It recently demerged its financial services arm – Jio Financial Services. All Reliance shareholders will get Jio Financial Services shares in a 1:1 ratio. 

Jio Financial Services has been valued at around USD 20 billion after its stock price was set at a much higher-than-expected Rs 261.85 in its demerger from Reliance Industries. 

The shares of Reliance Industries concluded the day at Rs 2506.30 on the BSE.

Jio Financial Services Ltd, the demerged financial lending division of Reliance Industries Ltd, and BlackRock, the world’s largest asset manager, have formed a partnership to establish an asset management company. They plan to invest a total of USD 300 million in this venture. 

BlackRock the largest asset manager in the world, is poised to collaborate with Reliance Industries Ltd (RIL), India’s largest company. This marks BlackRock’s return to the country after exiting in 2018. The US-based investment giant is forming a 50:50 joint venture with Jio Financial Services (JFS) to establish an asset management business, as announced by both companies on Wednesday evening. 

Jio BlackRock brings BlackRock’s deep expertise and talent in investment management, risk management, product excellence, and access to technology, operations, scale, and intellectual capital around markets, while JFS contributes local market knowledge, digital infrastructure capabilities, and robust execution capabilities. Together, the partnership will introduce a new player to the Indian market with a unique combination of scope, scale, and resources,” said JFS in a statement. 

Furthermore, this collaboration will signal the return of Larry Fink, the Chairman of BlackRock and a prominent advocate for environmentally responsible investing, to India. It comes after he departs from his long-term partnership with Hemendra Kothari of DSP. 

BlackRock manages approximately USD 11 trillion, which accounts for roughly 7% of the world’s total financial assets. 

In a joint statement on Wednesday, they announced that their joint venture, named “Jio BlackRock,” aims to provide technology-enabled access to affordable and innovative investment solutions for millions of investors in India. 

Both partners have decided to invest USD 150 million each in the joint venture, positioning it as the 44th player in the Indian mutual fund industry, which currently stands at Rs 44.39 trillion. The industry is presently dominated by SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund. 

The joint venture will launch operations post-receipt of regulatory and statutory approvals. The company will have its own management team. 

RIL Ltd on Wednesday said the name of its demerged entity Reliance Strategic Investments has been changed to Jio Financial Services with effect from July 25. It recently demerged its financial services arm – Jio Financial Services. All Reliance shareholders will get Jio Financial Services shares in a 1:1 ratio. 

Jio Financial Services has been valued at around USD 20 billion after its stock price was set at a much higher-than-expected Rs 261.85 in its demerger from Reliance Industries. 

The shares of Reliance Industries concluded the day at Rs 2506.30 on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.