BlackRock buys Preqin for £2.55bn
BlackRock has acquired private markets data provider Preqin for £2.55bn.
The world’s largest asset manager said that it will combine Preqin’s data and research tools with its in-house investment technology – dubbed Aladdin – into a unified platform to create a private markets technology and data provider.
Private markets are the fastest growing segment of asset management, with alternative assets expected to reach nearly $40tn (£31.6tn) by the end of the decade, according to BlackRock.
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The asset manager said that there is a growing need for standardised data, benchmarks and analytics due to increasing client demand for alternatives.
Private markets data is estimated to be an $8bn total addressable market and growing 12 per cent per year, reaching $18bn by 2030, according to BlackRock.
“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,” said Rob Goldstein, BlackRock’s chief operating officer.
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“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.”
Preqin has been operational for 20 years, providing data solutions in private markets with global coverage of 190,000 funds, 60,000 fund managers and 30,000 private markets investors.
In 2024, Preqin is expected to generate around $240m of highly recurring revenue and has grown approximately 20 per cent 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.
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“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.” said Mark O’Hare, founder of Preqin. “I look forward to joining BlackRock and continuing to play a role in the continued growth and success of Preqin and our customers.”
O’Hare will join BlackRock as a vice chair after the close of the transaction, which is expected to happen by the end of the year.
Barclays served as lead financial adviser to BlackRock, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel.
Goldman Sachs served as the sole financial adviser, and Macfarlanes acted as legal counsel, to Preqin.
