BLACKROCK BACK IN INDIA
Global investment manager BlackRock is reportedly planning to re-enter India. This will be done through a 50/50 joint venture (JV) with Reliance Industries’ new financial arm, Jio Financial Services.
The world’s largest asset manager recently completed its acquisition of a controlling stake in Credit Suisse Asset Management’s UK and Ireland business. It previously exited the Indian market in 2018. Back then, it sold its 40% stake in DSP BlackRock Investment Managers Pvt. Ltd. to joint venture partner DSP Group.
In the planned JV, named Jio Blackrock, the BlackRock Group will provide its asset management services in India. The venture, as per sources, will also seek to leverage the reach and technology capabilities of Jio Financial Services. The operations will be launched after regulatory and statutory approvals.
To be precise, the JV will offer investment products such as mutual funds, exchange-traded funds (ETFs), and other asset management services to domestic and international investors. The two companies established a new entity, Jio – BlackRock Investment Managers Private Ltd. Now, it holds registration in India, with its headquarters situated in Mumbai.
The venture is in line with the Indian government’s efforts to attract more foreign investments into the Indian market. It will also help BlackRock expand its business in the region. Commenting on the move, BlackRock’s Chairman and CEO, Larry Fink, said, “India is a large, vibrant, and fast-growing economy with a strong financial system and a rapidly-developing asset management landscape. We look forward to deepening our involvement in India’s investment markets through this joint venture and offering an expanded range of products to mutual fund units and other investors.”
For BlackRock, the move to enter India once again will be a major boost. India is one of the fastest-growing markets for asset management services. Hence, this venture could give the global leader a strong foothold in the region.
The partnership will help the group access global insights, expertise, and experience in asset management. Therefore, it proves to be beneficial for Reliance Industries. A venture with the world’s biggest asset manager will further strengthen Reliance’s new financial arm, Jio Financial Services.
If the JV materialises, it will be a major step in the consolidation of Reliance Industries’ presence in the highly competitive asset management industry in India. In addition to this, the new entity will be the first foreign-owned asset manager in India.
