Jio Financial Services and BlackRock, a joint venture : Brief Analysis by Sanjeedeep Mishra.

Jio Financial ropes in BlackRock to disrupt India’s asset management industry. The two have signed an agreement to form a 50:50 joint venture to offer investment solutions. JFS and BlackRock are targeting initial investment of $150 million each in the joint venture, to be named Jio BlackRock. This is a second attempt for BlackRock in Indian Market.

Previously, the DSP-Blackrock split came about because the two co-owners both wanted to own 100% of the business. Since DSP was the majority stakeholder, it was able to have its way. In the past, this AMC was called DSP Merill Lynch but was renamed after the takeover of Merill Lynch by BlackRock.

BlackRock said it sold its stake in the joint venture because it could not integrate DSP BlackRock onto its technology and operating platform since it was a minority stakeholder. BlackRock was keen on continuing the business alone and was considering buying out DSP’s 60% stake in the asset management firm. However, that didn’t happen.

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