BlackRock Acquires Preqin for £2.55 Billion, Expanding Private Markets Data Capabilities
BlackRock Inc. has agreed to acquire Preqin, a leading independent provider of private markets data, for £2.55 billion or approximately $3.2 billion in cash. This acquisition will integrate Preqin’s data and research tools with Aladdin’s workflow capabilities, creating a premier private markets technology and data platform. This strategic move enhances BlackRock’s investment technology and expands its presence in the rapidly growing private markets data segment.
Barclays served as the lead financial advisor to BlackRock, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel. Goldman Sachs International was the sole financial advisor, and Macfarlanes acted as legal counsel to Preqin.
Private markets represent the fastest-growing segment in asset management, with alternative assets projected to reach nearly $40 trillion by the decade’s end. As institutional and wealth investors increase their allocations to alternatives, BlackRock is meeting this demand by building a leading private markets franchise. This expansion highlights the growing need for standardized data, benchmarks, and analytics, which enable investors to better incorporate private asset classes into portfolios and provide fund managers with superior data and tools. The private markets data sector is estimated to be an $8 billion total addressable market, growing at 12% annually and expected to reach $18 billion by 2030.
Preqin, with its 20-year history, empowers investors by providing data and insights that increase transparency and access across the global alternatives market. It covers 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, reaching over 200,000 users, including asset managers, insurers, pensions, wealth managers, banks, and other service providers. In 2024, Preqin is expected to generate ~$240 million in highly recurring revenue, having grown approximately 20% annually over the last three years.
Through the Aladdin platform, BlackRock provides technology solutions to over 1,000 clients. The combination of Preqin with eFront, Aladdin’s private markets solution, will enhance the data, research, and investment process for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance. Preqin will continue to be offered as a standalone solution.
Rob Goldstein, BlackRock’s Chief Operating Officer, stated, “BlackRock’s vision has always been to integrate investments, technology, and data to offer comprehensive solutions for our clients’ portfolios. As clients shift from product selection to portfolio construction, this requires technology, data, and analytics that create a ‘common language’ for investing across public and private markets. We see data powering the industry across technology, capital formation, investing, and risk management.”
Sudhir Nair, Global Head of Aladdin, added, “Together with Preqin, we can simplify private markets investing and build a more connected platform for investors and fund managers, bridging the transparency gap between public and private markets through data and analytics.”
Mark O’Hare, Founder of Preqin, said, “BlackRock is known for excellence in both investment management and financial technology. Together, we can enhance private markets data and analytics for our clients at scale. I look forward to joining BlackRock and contributing to the continued growth and success of Preqin and our customers.” O’Hare will join BlackRock as a Vice Chair after the transaction closes.
Christoph Knaack, CEO of Preqin, expressed excitement about the opportunities this next phase of growth with BlackRock promises for customers and employees.