The USA Leaders
1 July, 2024
New York – Another big deal breaks in the market as BlackRock Acquires Preqin. Financial services giant BlackRock, the world’s largest asset manager with over $10 trillion in assets under management, has reached an agreement to acquire Preqin, a leading independent provider of private markets data, for £2.55 billion (approximately $3.2 billion) in cash.
The deal, expected to close before the end of 2024, will significantly enhance BlackRock’s capabilities in the private markets space, a growing asset class that encompasses private equity, venture capital, real estate, and other non-publicly traded investments.
Preqin’s Extensive Reach
- Founded in 2004, Preqin boasts a rich 20-year history as a trusted source for private market data.
- The company offers comprehensive coverage, with data on over 190,000 funds, 60,000 fund managers, and 30,000 private market investors.
- Preqin’s user base exceeds 200,000, encompassing asset managers, insurers, pension funds, wealth managers, banks, and other service providers.
- The company has experienced significant growth, generating an estimated $240 million in recurring revenue in 2024 and maintaining a 20% annual growth rate over the past three years.
A Strategic Alliance After BlackRock Acquires Preqin
This acquisition signifies a strategic move for BlackRock to solidify its leadership position in the private markets. By integrating Preqin’s data and research tools with BlackRock’s industry-leading Aladdin workflow platform, BlackRock will create a comprehensive solution that empowers investors across the private market landscape.
Preqin’s robust dataset, encompassing information on funds, investors, and deals, will provide BlackRock’s Aladdin users with unparalleled insights for making informed investment decisions. Furthermore, the combined platform will streamline workflows, enabling users to seamlessly navigate fundraising activities, identify and source deals, monitor portfolio performance, and ensure accurate accounting practices.
Why did BlackRock Acquires Preqin?
- Enhanced Risk Management and Analytics: The combined platform will improve BlackRock’s ability to manage risk and conduct analytics across its private markets activities, both discretionary and those managed through Aladdin.
- Streamlined Workflows: Integrating Preqin’s data with Aladdin will allow BlackRock to seamlessly integrate private markets investment workflows with proprietary data, encompassing various aspects like fundraising, deal sourcing, portfolio monitoring, accounting, and performance.
BlackRock’s COO, Rob Goldstein, commented on the acquisition,“This acquisition strengthens BlackRock’s ability to oversee risk management and analytics across its private markets presence. The combination of Preqin with Aladdin will allow us to integrate private markets investment workflows with comprehensive data, empowering us across all facets of private markets investing.”
Overall, this deal positions BlackRock to become a dominant player in the private market data and investment landscape. The time will tell how this acquisition proves to be the right decision for BlackRock.
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