Jio Financial, BlackRock partner to establish wealth management, broking venture

Jio Financial Services and BlackRock Inc have forged a new joint venture (JV) aimed at setting up a wealth management and broking business within the country in a move to capitalise on the rising wealth management sector in India.

The development comes less than a year after the duo launched an asset management venture.

Jio Financial Services, a subsidiary of Reliance Industries backed by billionaire Mukesh Ambani, unveiled plans for the JV, indicating its intention to tap into the increasingly lucrative wealth management landscape. The JV will encompass the establishment of a wealth management firm initially, followed by the incorporation of a brokerage company.

With India's high net-worth individuals possessing financial assets ranging from $1 to $1.2 trillion, as outlined in a recent Jefferies report, the JV's aspiration to delve into the wealth management domain is strategically aligned with the market's potential for growth.

Last June, Jio Financial Services and BlackRock embarked on a 50:50 joint venture to introduce asset management services in India, marking an initial investment commitment of $150 million from each entity.

(With Reuters inputs)