Jio Financial Services and BlackRock joint venture to enter India’s asset management industry

Mumbai: Jio Financial Services Limited (JFS) and BlackRock  [NYSE: BLK] today announced an agreement to form Jio BlackRock, a 50:50 joint venture that  combines the respective strengths and trusted brands of BlackRock and JFS to deliver tech enabled access to affordable, innovative investment solutions for millions of investors in India.

Jio BlackRock brings BlackRock’s deep expertise and talent in investment management, risk  management, product excellence, 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 India market with a unique combination of scope, scale, and resources. JFS and  BlackRock are targeting initial investment of US$150 million each in the joint venture.

Rachel Lord, Chair & Head of APAC, BlackRock, said: “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.

We are very excited to be partnering with JFS to revolutionise India’s asset management industry  and transform financial futures. Jio BlackRock will place the combined strength and scale of both  of our companies in the hands of millions of investors in India.”

Speaking on this transaction, Mr Hitesh Sethia, President and CEO, JFS, said: “This is an  exciting partnership between JFS and BlackRock, one of the largest and most respected asset  management companies globally. 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.

Jio BlackRock will be a truly transformational, customer centric and digital-first enterprise with  the vision to democratise access to financial investment solutions and deliver financial well-being  to the doorstep of every Indian.”

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