Jio Financial ties up with Blackrock to launch asset management company

Jio Financial Services (JFS) and BlackRock have entered into a partnership to create Jio BlackRock Asset Management Company. This will be a 50:50 venture. BlackRock which is the biggest asset management company in the world and JFS will bring a combined investment of $300 million.

This collaboration paves the way for BlackRock's re-entry in India after it exited in 2018. BlackRock had quit its association with DSP after it felt that being a minority stakeholder with 40% equity was making it difficult for BlackRock to integrate the business onto its operating platform.

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In Joint statement both JFS and BlackRock said that this joint venture would bring together the strengths and trusted brands of BlackRock and JFS to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India.

Both the partners are planning to invest $150 million each into the venture. JFS' CEO and President Hitesh Sethia has said that this venture would leverage BlackRock's expertise in ivestment and risk mangement along with the technology capability and deep market expertise of JFS.

"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 the digital delivery of products", said Sethia.

Also Read: Jio Financial Services to trade as part of Nifty 50, Sensex for 3 days starting July 20

Meanwhile, Chair & Head of APAC, BlackRock Rachel Lord has said that India offers enormous opportunities and that the digital transformation across industries is reshaping the market in incredible ways.

"India represents an enormously important opportunity. The convergence of rising affluence, favorable demographics, and digital transformation across industries is reshaping the market in incredible ways. We are very excited to be partnering with JFS to revolutionize 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," said Rachel Lord.

Once the regulatory and statutory approvals come, Jio BlackRock will launch its operations and the company will have its own management team.