The BlackRock logo is displayed at their headquarters on November 14, 2022 in New York City. BlackRock and Saudi Arabia’s sovereign wealth fund signed an agreement to jointly explore infrastructure projects in the Middle East.
Leonardo Munoz | Getty Images
BlackRock has formed a strategic partnership with Jio Financial Services, the financial services arm of Mukesh Ambani, a prominent Indian businessman. This collaboration is being hailed as a significant move that will allow BlackRock, the world’s largest money manager with $9.4 trillion in assets under management, to enter India’s rapidly expanding asset management market. Both BlackRock and Jio Financial Services plan to invest up to $150 million each in the joint venture, which will be named Jio BlackRock. The announcement was made in a statement released on Wednesday.
In a post on his LinkedIn page, Larry Fink, Chairman and CEO of BlackRock, expressed his excitement about the partnership, stating, “Today marks a major move for BlackRock as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services, a company built by Reliance Industries Limited.”
Mukesh Ambani, the founder and chairman of Reliance Industries, India’s largest listed company, has been named India’s richest man. With a net worth of $90.6 billion, Ambani is a prominent figure in the country’s business landscape.
Fink added that the partnership will “deliver our combined expertise and scale to unlock the power of investing for millions of people in India.”
The convergence of rising affluence, favorable demographics, and digital transformation across industries is reshaping the market in incredible ways.
Rachel Lord
Head of Asia-Pacific, BlackRock
This news comes shortly after the demerger of Jio Financial Services from its parent company Reliance Industries conglomerate. The newly formed “digital-first” service aims to provide affordable and innovative investment solutions to Indian investors, leveraging BlackRock’s expertise in investment and risk management.
The launch of the joint venture is subject to customary closing conditions and regulatory approvals.
Huge Potential
This is BlackRock’s second attempt to enter India’s asset management industry. In 2018, the company exited the market after a decade of operation. However, India is considered an enormously important opportunity, with Indian mutual fund assets under management doubling to 44.39 trillion rupees ($542 billion) in the past five years. Rachel Lord, Head of Asia-Pacific at BlackRock, emphasized the transformative nature of the Indian market, stating that the partnership will “revolutionize India’s asset management industry.”
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