BlackRock CEO Larry Fink Meets Narendra Mod, Ambani Ahead of COP28
Larry Fink, the CEO of BlackRock, the world”s largest asset manager with over $9 trillion in assets, visited India last weekend and met business partner Mukesh Ambani, Economic Times reported. Fink and Ambani also met with Prime Minister Narendra Modi in New Delhi.
In Mumbai, Fink visited Jio Campus in Navi Mumbai and RIL”s luxurious retail hub in the Bandra Kurla Complex and held conversations with the senior leadership.
Jio Financial Services and BlackRock had announced an asset management joint venture (JV) in August, with Jio Financial Services (JFS) demerging from RIL. The JV targets the rising investor population in the country with a plan to roll out a digital asset manager. JFS and BlackRock will invest $150 million each in the JV, making their stakes 50:50.
At the shareholders” meeting at RIL”s 46th annual general meeting, Fink acknowledged the fact that the unparalleled digital and consumer ecosystem built by Reliance and Jio has placed India at the heart of BlackRock with its cutting-edge digital transformation.
This is Fink”s second attempt to expand his presence in India. In 2008, he had partnered with Hemendra Koathari-led DSP Group, which he left later.
Fink also held conversations with HDFC Group for a possible joint venture before the JV with JFS came into effect.
New York-headquartered BlackRock currently has 2,400 employees across investing, operations, analytics, and corporate functions, with roughly 15% of its total $422 billion of Asian assets in India.
BlackRock manages about $13 billion more in investments that are directly exposed to the Indian economy, on behalf of its global clients. This could include investments in Indian stocks, bonds, real estate, and other asset classes. BlackRock is one of the largest asset managers in the world, and it has a significant presence in India.
Ambani plans to use his data and technology to penetrate the Indian financial markets, where he aims to reach retail investors who have multiplied after the pandemic. BlackRock”s digital platform Alladdin — the Asset, Liability, and Debt and Derivative Investment Network — adds value to Ambani”s plan.
“Their last meeting was to finalize the joint venture. This time, the focus was more on the road ahead,” Economic Times reported, quoting a company official.
Fink”s visit comes just before the COP28 (The Conference of Parties) summit in Dubai next month, where both Reliance and BlackRock are expected to publicize their clean energy agenda. In 2021, Ambani had announced that each of the Reliance businesses would achieve net-zero carbon emissions by 2035.
Fink is the frontrunner among Wall Street CEOs who are heading to the COP28 talks this year after rejecting the summit in Sharm El-Sheikh, Egypt, last year. This year”s COP summit is expected to be finance-heavy with the large participation of big finance companies, as it is being hosted by the UAE”s largest oil firm, Abu Dhabi National Oil Co., and its CEO, Sultan Al Jaber.
Sultan Al Jaber is keen on the idea of a fossil fuel phase-down, even as he has failed to put a date on a total phase-out, the report said.
Fink has faced heavy criticism over his annual letter to shareholders, with Republicans calling BlackRock”s environmental, social, and governance (ESG) push “woke capitalism,” and progressives accusing it of “greenwashing,” or championing practices that aren”t as environmentally friendly as they purport to be.
In April last year, BlackRock and Mubadala had invested Rs. 4000 crores in Tata Power”s renewable arm. Analysts believe that Fink may also fund Ambani”s new energy initiatives.
Fink has been in Asia recently, visiting Tokyo and hosting the world”s biggest investors. He was scheduled to fly to Kuwait and attend the “Davos in the desert” investment conference in Riyadh on October 24-26.
