BlackRock To Buy Private Markets Data Solutions Firm Preqin For $3.2 Billion

BlackRock To Expand Aladdin Tech Business Into Private Markets Data Segment To Reach $8 Billion Addressable Market
Rob Goldstein, Chief Operating Officer, BlackRock, and Mark O’Hare, Founder, Preqin, who will join BlackRock as a Vice Chair after the transaction closes
Rob Goldstein, Chief Operating Officer, BlackRock, and Mark O’Hare, Founder, Preqin, who will join BlackRock as a Vice Chair after the transaction closes

BlackRock said Monday it plans to acquire Preqin, an independent provider of private markets data, for about $3.2 billion in cash.

The purchase will add a significant “complementary data business to BlackRock’s investment technology, marking a strategic expansion into the fast-growing private markets data segment,” according to BlackRock.

Combining Preqin’s data and research tools with the workflow capabilities of BlackRock’s Aladdin tech business in a unified platform will “create a preeminent private markets technology and data provider,” BlackRock said.

The transaction is expected to close before Dec. 31, subject to regulatory approvals and other customary closing conditions, according to BlackRock.

Barclays served as lead financial advisor to BlackRock for the transaction, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel. Goldman Sachs International served as the sole financial advisor, and Macfarlanes acted as legal counsel, to Preqin.

Since its start 20 years ago, Preqin has been an independent data solutions provider in private markets with global coverage of 190,000 funds, 60,000 fund managers and 30,000 private markets investors, reaching more than 200,000 users, including asset managers, insurers, pensions, wealth managers, banks and other service providers, BlackRock said.

The addition of Preqin will also grow BlackRock’s client base across general partners (GPs), limited partners (LPs) and service providers, bringing over 4,000 relationships and about $240 million of highly recurring estimated 2024 revenue, BlackRock said. That comes after Preqin grew about 20% per year in the past three years.

Calling private markets the fastest growing segment of asset management, BlackRock said in its announcement that alternative assets are expected to hit almost $40 trillion by the end of this decade. Private markets data is expected to represent an $8 billion total addressable market that is growing 12% per year, reaching $18 billion by 2030, according to BlackRock.

Through its existing Aladdin platform, BlackRock provides technology solutions to more than 1,000 clients, it said. 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,” according to BlackRock.

Preqin will, meanwhile, continue to be offered as a standalone solution.

“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,” according to Rob Goldstein, BlackRock Chief Operating Officer.

“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,” he said. “We see data powering the industry across technology, capital formation, investing, and risk management.”

He added: “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.”

Sudhir Nair, Global Head, Aladdin
Sudhir Nair, Global Head, Aladdin

With Preqin, BlackRock will be able to make private markets investing “easier and more accessible while building a better-connected platform for investors and fund managers,” according to 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,” said Nair.

Together with BlackRock, “we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale,” according to Mark O’Hare, Founder of Preqin.

O’Hare will join BlackRock as a Vice Chair after the close of the transaction.

Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

Total
0
Shares
Related Posts

Sign Up for Our Newsletters

Sign Up for Our Newsletters