BY Richard Summerfield
BlackRock, the world’s biggest asset management company, has agreed to acquire Preqin, a leading independent provider of private markets data, for $3.2bn.
The deal, which is expected to close before year end 2024, subject to regulatory approvals and other customary closing conditions, will see BlackRock acquire 100 percent of the business and assets of Preqin. According to a statement announcing the transaction, Preqin covers 190,000 funds, 60,000 fund managers and 30,000 private markets investors. It is used by money managers, insurers, pensions and wealth managers, among others, and has grown approximately 20 percent per year in the past three years.
Preqin founder Mark O’Hare will join BlackRock as vice chair after the close of the transaction.
According to the firms, BlackRock will fold Preqin’s data and research tools into its Aladdin platform, which provides technology solutions to over 1000 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. The deal is set to bring in $240m of estimated revenue in 2024.
“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, chief operating officer at BlackRock. “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.”
“Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers,” said Sudhir Nair, global head of Aladdin. “This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics.”
“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.”
“Private markets continue to evolve and so is Preqin,” said Christoph Knaack, chief executive of Preqin. “I am incredibly excited about the opportunities this next phase of growth, together with BlackRock, promises our customers and our employees.”
BlackRock has made a number of moves into alternative assets of late, including its purchase of Global Infrastructure Partners for $12.5bn.