BlackRock to acquire Preqin for $3.2bn in major move into private markets data

BlackRock, Inc. (NYSE: BLK), a global leader in investment management, has announced a significant acquisition of Preqin, an independent provider of private markets data, for a hefty sum of £2.55 billion (approximately $3.2 billion) in cash. This strategic move is set to enhance BlackRock’s data and research capabilities, positioning it as a frontrunner in private markets technology and data.

At the forefront of the acquisition details, BlackRock is set to integrate Preqin’s extensive data and research tools with its own Aladdin platform. This combination aims to create a top-tier provider of private markets technology and data, significantly expanding BlackRock’s footprint in the rapidly growing private markets data sector. This sector is anticipated to skyrocket to nearly $40 trillion by the end of the decade.

Preqin, known for its robust data coverage and insights, serves over 200,000 users worldwide, including asset managers and banks. In 2024 alone, Preqin is expected to generate approximately $240 million in highly recurring revenue. The integration with BlackRock’s Aladdin platform will enhance data and research accessibility, aiding fund managers and investors across various activities such as fundraising and portfolio management.

Rob Goldstein, COO of BlackRock, emphasized the vision to harmonize investment, technology, and data to cater to client needs comprehensively. “The acquisition is not just about expanding our capabilities, but also about refining how we serve our clients across all asset classes,” Goldstein noted.

Preqin’s founder, Mark O’Hare, who will join BlackRock as Vice Chair post-transaction, shared his enthusiasm about the new opportunities this partnership will bring. “Joining forces with BlackRock enables us to push forward with providing enhanced data and analytics, making private market investing more transparent and accessible,” stated O’Hare.

With the transaction set to close by the end of 2024, pending regulatory approvals, this acquisition marks a pivotal step for BlackRock in dominating the private markets data space. This deal not only strengthens BlackRock’s technological and data prowess but also promises significant advancements in the accessibility and transparency of private market investments.