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BlackRock, Jio Financial Get Regulatory Nod to Set Up Mutual Fund Unit
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BlackRock Inc. (BLK - Free Report) and India-based Jio Financial have obtained in-principle approval from the Securities and Exchange Board of India (SEBI) to act as co-sponsors and establish a mutual fund business in the country.
SEBI will grant the final approval upon the fulfillment of certain requirements from both entities.
BLK & Jio Financial’s Joint Venture History
BlackRock entered into a joint venture with Jio Financial in July 2023, naming Jio BlackRock, to revolutionize India's asset management industry. This 50:50 partnership combined the scale and investment expertise of BLK with the local market knowledge and digital infrastructure capabilities of Jio Financial.
The joint venture targets an initial investment of $150 million each from BlackRock and Jio Financial. The primary goal is to democratize access to investment solutions and provide affordable, tech-enabled options for millions of investors in India.
In April 2024, both entities entered into a new joint venture to establish a wealth management and broking business in India to tap into India’s growing wealth business and rising retail investor base.
BlackRock’s Rationale Behind This Move
This move aligns with BlackRock’s inorganic growth strategy to strengthen its market share in domestic as well as global markets. The convergence of rising affluence, favorable demographics and digital transformation in India has created an incredible opportunity. Jio BlackRock aims to capitalize on this potential and reshape the investment landscape in the country.
Further, earlier this month, BLK acquired Global Infrastructure Partners to enhance its infrastructural offerings and origination capabilities. In June 2024, the company agreed to acquire Preqin for $3.2 billion to enhance its private market capabilities. In May, BlackRock completed the acquisition of the remaining 75% stake in SpiderRock to boost its separately managed accounts offerings.
Moreover, of late, the company has established strategic alliances as well. Last month, BLK entered into a collaboration with Banco Santander to expand into infrastructure markets.
Similarly, the company formed a partnership with Partners Group to introduce a multi-private markets models solution, boosting retail investors’ accessibility to alternative investments.
BLK’s Zacks Rank & Price Performance
Year to date, shares of BlackRock have gained 16.9% compared with the industry’s 25.1% growth.
Inorganic Expansionary Moves by Other Finance Firms
Last week, LPL Financial Holdings (LPLA - Free Report) , along with its subsidiaries LPL Financial LLC, completed the acquisition of Altria Wealth Solutions, Inc.
Per the acquisition announcement dated Feb. 13, 2024, LPLA expected onboarding and integration costs to be between $300 million and $350 million. Despite these expenses, the long-term financial projections are promising, with LPLA anticipating additional earnings of $140 million annually from the deal.
Similarly, Byline Bancorp, Inc. (BY - Free Report) entered into a cash and stock merger deal worth $41 million with First Security Bancorp, Inc. in an effort to strengthen its position in Chicago.
The merger is expected to solidify BY’s position as Chicago’s largest community bank, with assets under $10 billion, loans of $7.3 billion and deposits worth $7.8 billion, along with 45 branches across the greater Chicago metropolitan area.
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BlackRock, Jio Financial Get Regulatory Nod to Set Up Mutual Fund Unit
BlackRock Inc. (BLK - Free Report) and India-based Jio Financial have obtained in-principle approval from the Securities and Exchange Board of India (SEBI) to act as co-sponsors and establish a mutual fund business in the country.
SEBI will grant the final approval upon the fulfillment of certain requirements from both entities.
BLK & Jio Financial’s Joint Venture History
BlackRock entered into a joint venture with Jio Financial in July 2023, naming Jio BlackRock, to revolutionize India's asset management industry. This 50:50 partnership combined the scale and investment expertise of BLK with the local market knowledge and digital infrastructure capabilities of Jio Financial.
The joint venture targets an initial investment of $150 million each from BlackRock and Jio Financial. The primary goal is to democratize access to investment solutions and provide affordable, tech-enabled options for millions of investors in India.
In April 2024, both entities entered into a new joint venture to establish a wealth management and broking business in India to tap into India’s growing wealth business and rising retail investor base.
BlackRock’s Rationale Behind This Move
This move aligns with BlackRock’s inorganic growth strategy to strengthen its market share in domestic as well as global markets. The convergence of rising affluence, favorable demographics and digital transformation in India has created an incredible opportunity. Jio BlackRock aims to capitalize on this potential and reshape the investment landscape in the country.
Further, earlier this month, BLK acquired Global Infrastructure Partners to enhance its infrastructural offerings and origination capabilities. In June 2024, the company agreed to acquire Preqin for $3.2 billion to enhance its private market capabilities. In May, BlackRock completed the acquisition of the remaining 75% stake in SpiderRock to boost its separately managed accounts offerings.
Moreover, of late, the company has established strategic alliances as well. Last month, BLK entered into a collaboration with Banco Santander to expand into infrastructure markets.
Similarly, the company formed a partnership with Partners Group to introduce a multi-private markets models solution, boosting retail investors’ accessibility to alternative investments.
BLK’s Zacks Rank & Price Performance
Year to date, shares of BlackRock have gained 16.9% compared with the industry’s 25.1% growth.
Image Source: Zacks Investment Research
Currently, BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansionary Moves by Other Finance Firms
Last week, LPL Financial Holdings (LPLA - Free Report) , along with its subsidiaries LPL Financial LLC, completed the acquisition of Altria Wealth Solutions, Inc.
Per the acquisition announcement dated Feb. 13, 2024, LPLA expected onboarding and integration costs to be between $300 million and $350 million. Despite these expenses, the long-term financial projections are promising, with LPLA anticipating additional earnings of $140 million annually from the deal.
Similarly, Byline Bancorp, Inc. (BY - Free Report) entered into a cash and stock merger deal worth $41 million with First Security Bancorp, Inc. in an effort to strengthen its position in Chicago.
The merger is expected to solidify BY’s position as Chicago’s largest community bank, with assets under $10 billion, loans of $7.3 billion and deposits worth $7.8 billion, along with 45 branches across the greater Chicago metropolitan area.