BlackRock to Acquire Preqin, a Private Markets Data Solutions Provider

BlackRock, Inc. (NYSE: BLK) has agreed to acquire Preqin, an independent provider of private markets data for £2.55 billion or approximately $3.2 billion in cash.

Bringing together Preqin’s data and research tools “with Aladdin’s complementary workflow capabilities in a unified platform will create a preeminent private markets technology and data provider.”

The acquisition adds a highly complementary data business “to BlackRock’s investment technology, marking a strategic expansion into the fast-growing private markets data segment.”

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.”

As institutional and wealth investors increase allocations to alternatives, BlackRock has built a leading private markets franchise “to meet this client demand.”

There is reportedly an even greater need “for standardized data, benchmarks, and analytics that enable investors to better incorporate private asset classes into portfolios and provide fund managers with better data and tools to deliver outcomes for clients.”

Private markets data is estimated to “be an $8 billion total addressable market and growing 12% per year, reaching $18 billion by 2030.”

Preqin empowers investors to “make better decisions by providing data and insights that increase transparency and access across the global alternatives market.”

With a 20-year history, Preqin is an independent data solutions provider “in private markets with global coverage of 190,000 funds, 60,000 fund managers and 30,000 private markets investors, reaching more than 200,000 users, including asset managers, insurers, pensions, wealth managers, banks, and other service providers.”

In 2024, Preqin is expected to generate ~$240 million of “highly recurring revenue and has grown approximately 20% per year in the last three years.”

Through the Aladdin platform, BlackRock provides technology solutions “to over 1,000 clients.”

The combination of Preqin with eFront, Aladdin’s private markets solution, “brings together the data, research, and investment process for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance.”

Preqin will also continue to “be offered as a standalone solution.”

Rob Goldstein, BlackRock Chief Operating Officer said:

“BlackRock’s vision has always been to bring together investments, technology, and data to offer solutions that meet our clients’ needs across their whole portfolio. As clients increasingly evolve their focus from choosing products to constructing portfolios, this shift requires technology, data, and analytics that create a ‘common language’ for investing across both public and private markets. We see data powering the industry across technology, capital formation, investing, and risk management. Every acquisition has been an opportunity to strengthen our capabilities for clients—and in fact, we have been a client of Preqin for many years, and we look forward to welcoming the talented Preqin team to BlackRock.”

Mark O’Hare, Founder of Preqin said:

“BlackRock is known for excellence in both investment management and financial technology, and together we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale. I look forward to joining BlackRock and continuing to play a role in the continued growth and success of Preqin and our customers.” Preqin founder Mark O’Hare will join BlackRock as a Vice Chair after the close of the transaction.



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