BlackRock, the world’s largest asset manager, is set to acquire Preqin, a provider of private markets data, for £2.55 billion (approximately $3.2 billion) in cash.
This acquisition marks a significant move in the rapidly growing private markets data industry, which is estimated to be an $8 billion market, projected to grow 12 percent annually, reaching $18 billion by 2030.
Preqin is offering data and insights to its client in order to enhance transparency and access across the global alternatives market. Preqin offers global coverage, including data on 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, reaching over 200,000 users worldwide.
In 2024, Preqin is expected to generate approximately $240 million in recurring revenue, having grown at a rate of 20 percent annually over the past three years.
The acquisition will enable BlackRock to integrate Preqin’s data and research tools with its Aladdin’s advanced workflow capabilities, creating a comprehensive technology and data solution for the private markets sector.
BlackRock’s Aladdin platform currently provides technology solutions to over 1,000 clients. The merger of Preqin with eFront, Aladdin’s private markets solution, will streamline data, research, and investment processes for fund managers and investors, covering aspects such as fundraising, deal sourcing, portfolio management, accounting, and performance evaluation. Despite this integration, Preqin will also be available as a standalone solution.
“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,” said Rob Goldstein, BlackRock’s Chief Operating Officer.
The transaction is expected to close before the end of 2024, pending regulatory approvals and other customary closing conditions.
