Indian Billionaire Mukesh Ambani's 50-50 Joint Venture With Larry Fink's BlackRock Raises $2.1 Billion In Debut Fund Offering

Jio BlackRock Asset Management raised more than $2.1 billion across three cash and debt mutual fund schemes in its maiden offering, marking a significant milestone for the joint venture between Indian billionaire Mukesh Ambani‘s Jio Financial Services and BlackRock Inc. BLK.

What Happened: The three-day debut attracted investments from over 90 institutional investors and more than 67,000 retail investors, according to Reuters. The joint venture received its mutual fund license in May, enabling the launch of these initial schemes.

Jio BlackRock represents a 50-50 partnership between Jio Financial Services, a subsidiary of Reliance Industries Ltd., and U.S.-based BlackRock. The venture aims to capitalize on India’s underutilized financial investment market, where mutual fund assets represent only 16% of GDP compared to the global average of 63%.

BlackRock’s return to India’s asset management sector comes after the firm previously exited a joint venture with DSP Group in 2018. The new partnership leverages BlackRock’s investment management expertise with Jio Financial’s technological capabilities and local market knowledge.

Why It Matters: Jio Financial Services, which separated from Reliance Industries in 2023, has been expanding its financial services footprint. In October, the company received Reserve Bank of India authorization to operate as an online payment aggregator through its subsidiary Jio Payment Solutions.

The companies initially announced plans to invest $150 million each in the asset management venture. BlackRock Chairman and CEO Larry Fink has identified the partnership as crucial for expanding the firm’s global presence in high-growth markets.