BlackRock, the world’s largest asset manager, has announced its acquisition of Preqin, a leading provider of private markets data, for $3.2 billion.
This move aims to enhance BlackRock’s Aladdin financial technology platform by integrating Preqin’s extensive data and research tools.
Background and Motivation Behind the Acquisition
BlackRock’s acquisition of Preqin is driven by a strategic vision to enhance its capabilities in the private markets data segment.
Preqin, a UK-based firm, has a robust database covering 190,000 funds, 60,000 fund managers, and 30,000 private markets investors.
This acquisition aligns with BlackRock’s goal to integrate investments, technology, and data, providing comprehensive solutions for clients.
The private markets data sector is rapidly growing, with an estimated total addressable market of $8 billion, projected to reach $18 billion by 2030.
BlackRock aims to capitalize on this growth by combining Preqin’s data and research tools with its Aladdin platform, creating a unified solution for fund managers and investors.
This move also follows BlackRock’s recent $12.5 billion acquisition of Global Infrastructure Partners, highlighting its focus on expanding into alternative investments.
By acquiring Preqin, BlackRock seeks to offer better private markets data and analytics, meeting the evolving needs of its clients.
Additionally, the deal brings in approximately $240 million in recurring revenue for 2024, further strengthening BlackRock’s financial position, and expands BlackRock’s client base, adding over 4,000 relationships across general partners, limited partners, and service providers.
Implications for the Financial World
By integrating Preqin’s extensive private markets data with the Aladdin platform, BlackRock is set to become a dominant player in the private markets data segment.
This will drive standardization and transparency in private markets, which have traditionally been less accessible and more opaque compared to public markets.
The acquisition also signals a shift in the asset management industry towards greater reliance on data and technology.
As institutional and wealth investors increasingly allocate funds to alternative assets, the need for comprehensive data and analytics becomes paramount.
BlackRock’s enhanced capabilities will likely set a new benchmark for data-driven investment strategies, influencing how other asset managers approach private markets.
This acquisition could accelerate the adoption of private market investments, benefiting a broader range of investors.
