Days after demerging the financial services arm, Reliance Industries-backed Jio Financial Services Ltd (JFS) formed a joint venture with BlackRock to enter the crowded asset management market. JFS and BlackRock are targeting an initial investment of $150 million each in the joint venture.
“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,” said a press statement.
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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.”
‘Leverage expertise’
Hitesh Sethia, President and CEO, JFS, said: “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.