BlackRock Acquires Preqin for $3.23 BillionBlackRock Acquires Preqin for $3.23 Billion BlackRock, the world’s largest alternative asset manager, has announced an agreement to acquire British data firm Preqin for 2.55 billion pounds ($3.23 billion) in cash. This deal strengthens BlackRock’s position in the rapidly growing alternative investment industry. Preqin specializes in providing data and research on the alternative investment industry, covering various sectors such as private equity, infrastructure, and hedge funds. The firm’s services attract subscribers in over 90 countries. BlackRock intends to integrate Preqin’s data and research capabilities into its Aladdin tech division, which offers portfolio management software to investment professionals. This move aims to enhance the firm’s ability to offer data-driven investment solutions to fund managers. The acquisition is expected to generate approximately $240 million in recurring revenue for BlackRock in 2024. Preqin has experienced steady growth in recent years, expanding by approximately 20% annually over the past three years. BlackRock outbid rival potential acquirers, including London Stock Exchange Group and S&P Global, who also expressed interest in acquiring Preqin. The deal marks a significant consolidation in the financial data industry, following S&P Global’s acquisition of IHS Markit for $44 billion in 2022. Founder Mark O’Hare will join BlackRock as Vice Chairman upon completion of the transaction. BlackRock plans to continue offering Preqin as a standalone solution in the future. This acquisition highlights the growing demand for alternative assets and the importance of data and research in investment decision-making. By bringing together financial data, research, and investment processes, BlackRock aims to simplify and improve accessibility to private market investing.
BlackRock has agreed to acquire British data firm Preqin for 2.55 billion pounds ($3.23 billion) in cash, further expanding the world’s largest alternative asset manager.
BlackRock, which manages more than $10 trillion, is trying to capitalize on the explosion in investor demand for alternative assets, including everything from private equity to infrastructure. In January, BlackRock announced a deal to buy Global Infrastructure Partners (GIP) for $12.5 billion, while other investment firms have also made recent deals.
The asset manager beat off rival potential bidders including London Stock Exchange Group and S&P Global, which told Reuters last month they wanted to buy Preqin after a bidding process and after the owners decided to sell the business outright.
Demand for financial data and research has led to a wave of dealmaking in the sector in recent years, with one of the largest being S&P Global’s purchase of IHS Markit for $44 billion in stock, which closed in 2022.
BlackRock said in a statement that the acquisition would complement the firm’s Aladdin tech division as it brings together data, research and investment processes for fund managers.
Aladdin is BlackRock’s portfolio management software that enables investment professionals to view and manage their daily investments.
“Together with Preqin, we can make private market investing simpler and more accessible while creating a more connected platform for investors and fund managers,” said Sudhir Nair, Global Head of Aladdin at BlackRock.
Preqin will also be offered as a standalone solution in the future, the company said.
BlackRock said in a statement that Preqin is expected to generate recurring revenue of approximately $240 million in 2024 and has grown approximately 20% annually over the past three years.
Founded in 2003, Preqin specializes in data on the alternative investment industry. The UK-based company has subscribers in more than 90 countries, according to the UK government’s register of companies.
Founder Mark O’Hare will join BlackRock as Vice Chairman upon completion of the transaction.
(Reporting by Surbhi Misra and Akanksha Khushi in Bengaluru; additional reporting by Tommy Reggiori Wilkes; Editing by Mark Porter, Leslie Adler and Muralikumar Anantharaman)
