BlackRock Acquires Preqin for $3.2 Billion to Expand Private Data

BlackRock Inc. (BLK), the world’s largest asset manager, has agreed to acquire Preqin, a leading provider of alternative investment data, in a deal valued at approximately 2.55 billion pounds (or $3.2 billion USD). This strategic move signifies BlackRock’s continued expansion into the private markets data segment, a sector experiencing significant growth.

The acquisition, announced on June 28, 2024, is expected to close before the end of 2024, subject to regulatory approvals and customary closing conditions. Under the terms of the agreement, BlackRock will acquire 100% of Preqin’s business and assets.

Preqin is a UK-based company with a global presence that offers a comprehensive data platform for the alternative investment industry. Its services encompass various data points, including fund performance information, investor profiles, and deal activity across alternative asset classes such as private equity, venture capital, and real estate.

Several key factors drive BlackRock’s acquisition of Preqin. Firstly, the private markets data segment is experiencing robust growth, with a projected value of $18 billion by 2030. By acquiring Preqin, BlackRock gains access to a valuable data set that can enhance its ability to offer comprehensive investment solutions to its clients.

Integrating Preqin’s data with BlackRock’s existing Aladdin technology platform is expected to create a powerful tool for investment professionals. Aladdin is a portfolio management software suite that provides users with a centralized platform for analyzing and managing investments. The combined offering would provide a more holistic view of investment opportunities across public and private markets.

Thirdly, the acquisition aligns with BlackRock’s focus on technology and data-driven investment strategies. By incorporating Preqin’s data into its offerings, BlackRock aims to further refine its investment analysis capabilities and potentially generate superior risk-adjusted returns for its clients.

Industry analysts have reacted positively to the acquisition. Many view it as a strategic move to strengthen BlackRock’s position within the private market landscape. Additionally, the deal is expected to benefit Preqin by providing it with access to BlackRock’s extensive resources and global reach.

BlackRock’s acquisition of Preqin underscores the growing importance of data in the investment management industry. As the private markets sector evolves, access to high-quality data will be a critical differentiator for asset managers navigating this complex and dynamic environment.