BlackRock to Acquire Preqin
BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, will acquire Preqin, a leading independent provider of private markets data approximately for $3.2 billion in cash.
Bringing together Preqin’s data and research tools with BlackRock’s Aladdin platform 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, the US-based company said on Monday.
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 an even greater need for standardised 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,” the company said.
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 a leading 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 over $240 million of highly recurring revenue and has grown approximately 20% per year in the last three years.
BlackRock’s Vision
BlackRock Chief Operating Officer Rob Goldstein said that his company’s vision was 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,” he added.
Global Head of Aladdin Sudhir Nair said that together with Preqin, they can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers.
“This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics,” he said.
Preqin Founder Mark O’Hare, who will be joining BlackRock as a Vice Chair after the close of the transaction, said that BlackRock is known for excellence in both investment management and financial technology, and together they can accelerate their efforts to deliver better private markets data and analytics to all clients at scale.
The transaction is expected to close before year-end 2024, subject to regulatory approvals and other customary closing conditions.
Barclays served as lead financial advisor to BlackRock, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel. Goldman Sachs International served as the sole financial advisor, and Macfarlanes acted as legal counsel, to Preqin.
