JioBlackRock Broking Receives SEBI Approval to Launch Brokerage Business

Jio BlackRock Broking Private Limited (JioBlackRock Broking), a wholly owned subsidiary of Jio BlackRock Investment Advisers Private Limited (JioBlackRock Investment Advisers), has received regulatory approval from the Securities and Exchange Board of India (SEBI) to commence operations as a brokerage firm in India.

JioBlackRock Broking aims to bring affordable, transparent, and technology-driven execution capabilities for Indian investors. The broking entity’s parent company, JioBlackRock Investment Advisers is a 50:50 joint venture between Jio Financial Services Limited (JFSL) [BSE, NSE: JIOFIN] and BlackRock Inc. (BlackRock) [NYSE: BLK].

Along with the recent regulatory approvals received by Jio BlackRock Asset Management Private Limited and JioBlackRock Investment Advisers to commence operations, receipt of the broking license enables the JioBlackRock joint venture to offer holistic investment solutions to the people of India.

Marc Pilgrem, Managing Director and CEO of Jio BlackRock Investment Advisers Private Limited, said: “We are delighted to receive SEBI’s final approval for JioBlackRock Broking which moves us closer to contributing to India’s continued evolution from a nation of savers to a nation of investors. With JioBlackRock Investment Advisers, we will be able to offer personalised advice to retail investors. Now with brokerage, we will also bring an execution platform for self-directed investors. “

Hitesh Sethia, Managing Director and CEO, Jio Financial Services Limited said: “These are exciting times for us. Even as JioBlackRock’s Asset Management arm introduces innovative mutual funds to the market, and JioBlackRock Investment Advisers prepares to launch operations, the approval for the broking entity adds another dimension to our strategy of democratising investments in India, through easily accessible and digital-first solutions.”

Rachel Lord, Head of International at BlackRock, said: “JioBlackRock was founded to provide tech-enabled access to capital markets, and affordable, innovative investment solutions, to millions of investors in India. This third approval from SEBI completes the range of offerings of our joint venture. Through these three entities, JioBlackRock will provide a full suite of investment services, enabling Indian investors to work towards their financial goals.”

BlackRock Bets Big on Adani: Leads $750 Million Bond Deal

BlackRock has emerged as the largest investor in Adani Group's $750 million private bond issuance. This marks BlackRock's first private placement in India's infrastructure sector, signaling confidence in Adani despite ongoing scrutiny following a U.S. Department of Justice indictment in a bribery case last year.

With this investment, BlackRock acquired one-third of Adani Group's $750 million private bond issuance, making it the largest investor in the deal. Other major investors include Farallon Capital Management, Elham Capital, Sona Asset Management, and King Street Capital.

The bond issue is expected to yield 14% dollar returns for investors.

The funds were raised by Renew Exim, an Adani group entity, to finance the acquisition of ITD Cementation, a company specializing in infrastructure projects. Adani had previously acquired a 46.64% stake in ITD Cementation for ₹5,888.57 crore, and later increased its holding to 67.4T5% through an open offer.

This move aligns with BlackRock's broader strategy of investing in long-term infrastructure opportunities, following its $12.5 billion acquisition of Global Infrastructure Partners last year.

BlackRock Looking to Raise Its Share in India's $500 Bn Pool of Govt Bonds Market Via ETFs

BlackRock Inc, the world's largest fund manager, is looking to increase its stake in India's government bond market. The company aims to raise their share in the country's $500 billion pool of fully investible government bonds through exchange-traded funds (ETFs). This move comes as these bonds, which are under the Fully Accessible Route (FAR) with no foreign investment limits, are set to be included in JPMorgan's emerging market debt index starting June. The inclusion has been attracting attention from foreign money managers.

BlackRock launched its India bond ETF in February and currently manages $26 million in this fund. The ETF offers the cheapest fee among peers and has a weighted average yield of 7.14%. BlackRock's expertise in navigating complex markets like India provides them with an edge, especially in areas such as trade execution and tax minimization.

The firm is bullish on India, citing the country's high economic growth, stable currency, and relatively higher yields compared to other BBB-rated countries. With the Indian economy's positive macroeconomic backdrop and the rupee's stability, BlackRock is optimistic about its investment prospects in India.

BlackRock has launched an India bond ETF, which is designed as a convenient way for foreign investors to gain exposure to Indian government bonds. It simplifies the investment process by eliminating the need to navigate through the complexities of setting up specific accounts, managing exchange rate considerations, procuring the bonds directly, and handling tax considerations.

The India bond ETF by BlackRock is an Irish-domiciled UCITS (Undertakings for Collective Investment in Transferable Securities), which means it's regulated under European Union laws that allow for the sale of funds across EU countries. The fund is available to investors in Europe, the Middle East, Africa, and the Asia-Pacific region.

India's entry into global bond indices was discussed for nearly a decade but issues such as restrictions on foreign investors and local taxation delayed it.

In September 2023, JPMorgan had announced that it would include India in its emerging market bond index starting in June, where it will have a maximum weight of 10%. JPMorgan Chase & Co. has said it is on track to include India in its emerging market debt index from June.

In March this year, Bloomberg had announced that it will include India Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market (EM) Local Currency Government Index and related indices, to be phased in over a ten-month period, starting January 31, 2025.

The FTSE Russell is yet to include domestic bonds however.

With Record $10.3 Trillion in AUM, BlackRock Now Behind GDP of Only Two Countries

In 2021, BlackRock, the world's largest asset manager, became the first asset manager to hit the $10 trillion AUM mark, and after a small setback in 2022, BlackRock seems to be on the rise again as in the first quarter of 2024, BlackRock's assets under management (AUM) reached a staggering $10.5 trillion mark . To put this into perspective, only two countries on the planet have a GDP higher than that, i.e. US and China. 

This remarkable growth was driven by several factors such as Global Equity Market Rally, Net Inflows, its Aladin investment platform and spot bitcoin exchange fund.

During the first quarter, global equity markets rallied, and there were expectations that major central banks would pivot from monetary policy tightening to rate cuts. This favorable environment contributed to the surge in AUM for BlackRock.

About BlackRock's Net Inflows, the firm attracted $57 billion in total net inflows to its investment products during this period. These inflows played a crucial role in boosting their AUM.

Alongside the AUM milestone, BlackRock reported a 36% jump in profit. Their investment advisory and administration fees, which are typically a percentage of AUM, contributed significantly to their revenue growth.

In addition, BlackRock's spot bitcoin exchange-traded funds (ETFs) and its overall investment strategies have contributed to its remarkable AUM growth, positioning it as a major player in the financial industry.

BlackRock introduced the iShares Bitcoin Trust (IBIT), in January this year, which provides investors with access to bitcoin through the convenience and familiarity of an ETF. Unlike direct investing in bitcoin, which requires setting up an account with a crypto exchange, investors can buy IBIT in their existing brokerage accounts like any other ETF. IBIT aims to eliminate the logistical challenges, high trading costs, and tax reporting complexities associated with holding bitcoin directly. The sponsor fee for IBIT is 0.25%, but it is waived to 0.12% for the first 12 months up to $5 billion in assets.

Moreover, BlackRock's technology revenue also saw growth, particularly due to sustained demand for their Aladdin investment management platform.

BlackRock's impressive performance reflects their ability to navigate global markets and attract substantial investments. Their position as a leader in the asset management industry remains strong, and this record AUM underscores their influence in the financial world.

BlackRock To Acquire Global Infrastructure Partners for $12.5 Billion

Global Infrastructure Partners (GIP), the world’s largest independent infrastructure manager with over $100 billion in AUM, and BlackRock, Inc. have jointly announced that the companies have entered into an agreement for BlackRock to acquire Global Infrastructure Partners for total consideration of $3 billion of cash and approximately 12 million shares of BlackRock common stock.

This transaction creates a world leading infrastructure private markets investment platform with over $150 billion of equity, credit and solutions assets under management that will be overseen by the Global Infrastructure Partners (GIP) leadership team, which will remain in place.

Post acquiring GIP, which has about $106bn in assets under management, BlackRock would be the world's second- largest infrastructure manager after Macquarie, an Australia-based global financial services group currently the world's biggest infrastructure asset manager and a top 50 global asset manager, managing more than ~ °735.5 billion of assets on behalf of investors across multiple asset classes.

Investors have adopted private infrastructure investing for its ability to provide stable cashflows, less correlated returns, and a hedge against inflation. Global corporates have turned to private infrastructure as a fast innovator and a more commercially agile owner of infrastructure assets that aren't core to their commercial businesses. This platform is set to be the preeminent, one-stop infrastructure solutions provider for global corporates and the public sector, mobilizing long-term private capital through long-standing firm relationships.

The announcement made through a press release, said that the combination of GIP with ß global infrastructure franchise with differentiated origination and asset management capabilities. The over $150 billion combined business will seek to deliver clients market-leading, holistic infrastructure expertise across equity, debt and solutions at substantial scale. Marrying the proprietary origination and business improvement capabilities of GIP and BlackRock’s global corporate and sovereign relationships provides a platform for diversified, large-scale sourcing to support deal flow and co-investment opportunities for _अक्की . We believe bringing GIP and BlackRock together will deliver to clients the benefits of broader origination and business improvement capabilities.

Founded in 2006, world leading independent infrastructure investor GIP manages over $100 billion in client assets across infrastructure equity and debt, with a focus on energy, transport, water and waste, and digital sectors. GIP’s performance has been driven by proprietary origination, operational improvements, and timely exits. They have successfully scaled their global equity flagship series, with the most recent fully invested flagship fund in 2019 surpassing $22 billion.

BlackRock’s over $50 billion of infrastructure client AUM is comprised of infrastructure equity, debt and solutions, and has grown both organically and inorganically since inception in 2011. Top investment talent at BlackRock lead franchises that include Diversified Infrastructure, Infra Debt, Infra Solutions, Climate Infrastructure and Decarbonization Partners. 

Jio Financial Services and BlackRock Form JV to Enter India’s Asset Management Space with Digital-First Approach

• Jio BlackRock combines Jio Financial Services’ knowledge and resources and BlackRock’s scale and investment expertise to deliver affordable, innovative investment solutions to millions of investors in India.
• Partnership aims to transform India’s asset management industry through a digital-first offering and democratise access to investment solutions for investors in India.

Jio Financial Services Limited (JFS) and BlackRock [NYSE: BLK] today announced an agreement to form Jio BlackRock, a 50:50 joint venture that combines the respective strengths and trusted brands of BlackRock and JFS to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India.

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. Together, the partnership will introduce a new player to the India market with a unique combination of scope, scale, and resources. JFS and BlackRock are targeting initial investment of US$150 million each in the joint venture.

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. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”

Speaking on this transaction, Mr Hitesh Sethia, President and CEO, JFS, said: “This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. 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.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.

About BlackRock India

BlackRock India is at the very heart of our global operating platform, enabling us to innovate our business to benefit clients. Over the past 17 years, our India platform has grown to over 2,400 employees across offices in Mumbai, Gurgaon, and Bangalore powering our global network by employing talents across investments, alternatives, operations, analytics and modelling, and corporate functions.

About Jio Financial Services Limited

Jio Financial Services Limited (JFS) through its operating subsidiaries and joint ventures will offer broad range of financial services solutions addressing the needs of both consumers and merchants. JFS will use technology as a key enabler to reach customers directly.

Co-working Firm GoWork Raises $53 Mn Debt Funding from BlackRock, CLSA Capital

Coworking operator GoWork on Tuesday said it has raised USD 53 million (around Rs 375 crore) debt funding from US-based BlackRock and CLSA Capital Partner to expand its business.

GoWork will use this funding to further scale the business and provide value-added services to its clients. The company currently has two coworking centres at Gurugram in Haryana, spread over 8 lakh square feet with a capacity of 12,000 seats.

"GoWork has raised USD 53 million from a private fund managed by BlackRock's Private Credit team, along with CLSA Capital Partners' Special Situations Group, in a round of debt funding," the Gurugram-based coworking firm said in a statement.

This is the first onshore private financing transaction in India by global investment management firm BlackRock, it added.

GoWork CEO & Chief Evangelist, Sudeep Singh said, with their (BlackRock and CLSA) support, GoWork can further propel its growth across the length and breadth of all emerging markets in India. It plans to have 50 centres across major cities of India by 2025.

As of June 30, 2019, BlackRock managed about USD 6.84 trillion in assets on behalf of investors worldwide.

CLSA Capital Partners is the alternative asset management business of CLSA, Asia's leading capital markets and investment group.

In India, coworking segment is growing at a rapid pace, driven by demand for quality office space from startups, small and medium enterprises and large corporates. This segment is already accounting for 15-20 per cent of the total office space leasing across major seven cities.

To recall, just last week an another Delhi/ NCR based co-working startup GoHive had raised ₹ 2.5 crore from investors to expand its operations. It currently has seven co-working centres in the national capital region.