BlackRock has announced the acquisition of private markets data provider Preqin, complementing its portfolio management software Aladdin and private markets solution eFront.
Under the terms of the transaction, it will acquire 100 per cent of the business and assets of Preqin for total consideration of £2.55 billion or approximately US$3.2 billion in cash.
The transaction is expected to close before the end of calendar year 2024, subject to regulatory approvals and other customary closing conditions. With this, Preqin founder Mark O’Hare will join BlackRock as a vice chair.
According to BlackRock, bringing together Preqin’s data and research tools with Aladdin’s complementary workflow capabilities in a unified platform will “create a pre-eminent private markets technology and data provider”.
In combination with eFront, Aladdin’s private markets solution, it will bring together the data, research, and investment process for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance.
Preqin will continue to be offered as a standalone solution following the acquisition.
“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,” said BlackRock chief operating officer Rob Goldstein.
“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.”
Preqin currently offers global coverage of 190,000 funds, 60,000 fund managers, and 30,000 private markets investors. It serves more than 200,000 users, including asset managers, wealth managers, banks, and other service providers.
It is expected to generate ~US$240 million of highly recurring revenue in 2024 and has grown approximately 20 per cent per year in the last three years.
Commenting on the acquisition, Preqin CEO Christoph Knaack said: “Private markets continue to evolve and so is Preqin.
“I am incredibly excited about the opportunities this next phase of growth, together with BlackRock, promises our customers and our employees.”
Private markets are believed to be the fastest growing segment of asset management, with alternative assets expected to hit almost US$40 trillion by the end of the decade.
Private markets data is estimated to be an US$8 billion total addressable market and poised to hit US$18 billion by 2030, growing at 12 per cent per year.
