BlackRock Acquires Preqin for $3.22 Billion

BlackRock has agreed to acquire U.K. data provider Preqin for $3.22 billion, marking a significant expansion in the asset manager’s private-market operations. The deal, expected to close by year-end, underscores BlackRock’s commitment to enhancing its data capabilities as it delves deeper into private-market investments.

 

The New York-based firm announced the acquisition late Sunday, agreeing to purchase Preqin for 2.55 billion pounds in cash. Preqin, a leading data provider founded in 2003, focuses on the global alternatives market, offering insights into private capital, hedge funds, infrastructure, real estate, and natural resources.

 

BlackRock plans to maintain Preqin as a standalone service while integrating its data capabilities with BlackRock’s Aladdin proprietary software. This integration aims to establish a premier private markets technology and data provider.

 

In a statement, BlackRock emphasized the rapid growth of private markets, projecting alternative assets to approach $40 trillion by the end of the decade. The acquisition of Preqin aligns with BlackRock’s strategy to capitalize on this expansion, having already posted a 20% annual growth rate over the past three years.

 

Barclays served as the lead financial adviser to BlackRock, while Goldman Sachs International advised Preqin on the deal. This acquisition follows BlackRock’s earlier move in January to acquire private-equity firm Global Infrastructure Partners for $12.5 billion in cash and stock. Last week, BlackRock also partnered with Chicago-based GeoWealth to offer customized private-equity and debt funds for financial advisers across the U.S.

 

Expanding Private-Market Operations

BlackRock’s push into private markets aims to diversify its portfolio beyond its core business of low-cost passive investment products like exchange-traded funds. With assets under management reaching $10.47 trillion in the first quarter, BlackRock is well-positioned to leverage this acquisition to further solidify its presence in the rapidly growing private markets sector.

 

The integration of Preqin’s data expertise is expected to significantly bolster BlackRock’s analytical capabilities, offering enhanced insights and strategic advantages in managing alternative assets. As BlackRock continues to expand its footprint, the Preqin acquisition is a strategic move to stay ahead in the competitive asset management industry.

 

The deal, pending regulatory approval, is anticipated to close before the end of the year, marking a pivotal moment in BlackRock’s growth strategy and its commitment to harnessing advanced data solutions for superior asset management.