BlackRock has announced its agreement to acquire UK-based data group Preqin for £2.55 billion ($3.23 billion). This acquisition marks a significant expansion by the world's largest asset management company into the private markets data segment.
The acquisition will complement BlackRock's Aladdin tech business by integrating data, research, and investment processes for fund managers. Aladdin, BlackRock's portfolio management software, provides investment professionals with a comprehensive platform to view and manage daily investments. The acquisition of Preqin is set to bolster this platform, making private markets investing more accessible and efficient.
"Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers," said Sudhir Nair, global head of BlackRock's Aladdin.
Preqin, founded in 2003, specializes in data about the alternative investment industry, with a subscriber base spanning over 90 countries. The company has seen robust growth, with revenues increasing by over 20% annually in the past three years. Preqin is expected to generate approximately $240 million in recurring revenue in 2024.
The acquisition will see Preqin continue to operate as a standalone service while integrating its data feeds into BlackRock's Aladdin and eFront risk management platforms. The deal underscores BlackRock's commitment to acquiring specialized data providers to enhance its service offerings.
The deal comes amidst a series of significant acquisitions in the data provider sector in recent years. Notably, S&P Global acquired IHS Markit for $44 billion in 2020, and the London Stock Exchange Group purchased Refinitiv for $27 billion. Private equity firms have also targeted smaller firms, with Permira acquiring a majority stake in Reorg, valuing the distressed debt and bankruptcy information provider at approximately $1.3 billion.
Preqin's founder, Mark O'Hare, will join BlackRock as a vice chair following the transaction's completion. This move aligns with BlackRock's strategy to maintain Preqin's distinct service while leveraging its data to enhance BlackRock's existing platforms.
