BlackRock to Acquire Preqin for $3.2 Billion in Cash: Boosting Private Markets Data Integration
BlackRock, the world’s largest investment manager, has made a significant move in the private markets data sector with its agreement to acquire Preqin, a London-based provider of private markets data, for £2.55 billion ($3.2 billion) in cash. This acquisition is aimed at enhancing BlackRock’s alternatives investing platform by integrating data and technology solutions.
Private markets are the fastest-growing segment of asset management, with alternative assets expected to reach nearly $40 trillion by the end of the decade. The demand for private markets data and analytics is also on the rise, with a total addressable market expected to reach $18 billion by 2030.
BlackRock’s chief operating officer, Rob Goldstein, highlighted the importance of technology, data, and analytics in meeting clients’ evolving needs across their portfolios. The acquisition of Preqin is expected to grow BlackRock’s client base by over 4,000 relationships and add around $240 million of recurring revenue in 2024.
Founded in 2003, Preqin has expanded its global coverage to include 190,000 funds, 60,000 fund managers, 30,000 private markets investors, and over 200,000 users. The integration of Preqin with BlackRock’s portfolio management software platform, Aladdin, will provide fund managers and investors with a comprehensive solution for fundraising, deal sourcing, portfolio management, and more.
The acquisition of Preqin is part of a trend in the financial industry where data providers are becoming increasingly important for managing investments and assessing risk and performance. BlackRock’s move follows other significant deals in the sector, such as S&P Global’s acquisition of Visible Alpha and MSCI’s acquisition of Real Capital Analytics.
Overall, BlackRock’s acquisition of Preqin underscores the growing importance of data and analytics in the investment management industry and highlights the company’s commitment to providing innovative solutions for its clients.
