BlackRock has agreed to acquire Preqin, a UK-based independent provider of private markets data for £2.55bn ($3.2bn) in cash, combining Preqin’s data and research tools with Aladdin’s workflow functions into a single platform.
The transaction is expected to close by the end of 2024.
According to a press statement, “the acquisition adds a highly complementary data business to BlackRock’s investment technology, marking a strategic expansion into the fast-growing private markets data segment”.
Sudhir Nair, Global Head of Aladdin, said: “Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers. This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics.”
Preqin covers 190,000 funds, 60,000 fund managers and 30,000 private markets investors. Its 200,000-plus users include asset managers, insurers, pensions, wealth managers, banks and other service providers. In 2024, Preqin is expected to generate approximately $240m of highly recurring revenue and has grown approximately 20% per year in the last three years.
Through the Aladdin platform, BlackRock provides technology solutions to over 1,000 clients. The company says that 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. Preqin will also continue to be offered as a standalone solution.
Barclays and Skadden, Arps, Slate, Meagher & Flom advised BlackRock. Goldman Sachs International and Macfarlanes advised Preqin.
