BlackRock Acquires Preqin: A Strategic Move in the Private Markets Data Space
Introduction
BlackRock, the world’s largest asset manager, has made a significant move in the private markets data sector by acquiring Preqin for $3.2 billion. This acquisition is expected to enhance BlackRock’s Aladdin financial technology platform and provide valuable private market data and research tools. The deal is set to generate $240 million in recurring revenue this year and is part of BlackRock’s strategic vision for growth in the private markets data space.
BlackRock’s Acquisition of Preqin
BlackRock’s acquisition of Preqin, a UK-based private markets data provider, is a strategic move that will bolster its position in the rapidly expanding private markets data sector. The $3.2 billion cash deal is aimed at integrating Preqin’s expertise and resources into BlackRock’s Aladdin platform, which is widely used by institutional investors for risk management and investment analysis.
With more than $10 trillion in assets under management, BlackRock is a dominant player in the asset management industry. By acquiring Preqin, the company aims to strengthen its capabilities in providing comprehensive data and analytics for private market investments. This move aligns with BlackRock’s commitment to innovation and technology-driven solutions for its clients.
Strategic Benefits of the Acquisition
The acquisition of Preqin is expected to bring in approximately $240 million in recurring revenue for BlackRock in 2024. This revenue stream will further enhance BlackRock’s financial performance and contribute to its long-term growth strategy. By integrating Preqin’s private markets data and research tools into the Aladdin platform, BlackRock can offer enhanced services to its clients and provide valuable insights for investment decision-making.
Private markets data represents a significant growth opportunity for BlackRock, with an estimated total addressable market of $8 billion. The sector is growing at a rate of 12% annually and is projected to reach $18 billion by 2030. By investing in this high-growth market segment, BlackRock is positioning itself for future success and expanding its presence in the private markets data space.
Implications for the Industry
The acquisition of Preqin by BlackRock has significant implications for the asset management industry and the private markets data sector. By combining their respective strengths and resources, BlackRock and Preqin can deliver innovative solutions and services to institutional investors and asset managers. This partnership will enable BlackRock to offer a comprehensive suite of private market data and analytics, enhancing its competitive position in the market.
Preqin founder Mark O’Hare will join BlackRock as a vice chair, bringing his expertise and industry knowledge to the company. O’Hare’s leadership will be instrumental in driving the integration of Preqin’s capabilities into BlackRock’s operations and expanding its footprint in the private markets data sector. The collaboration between BlackRock and Preqin is expected to create synergies that benefit both companies and their clients.
Conclusion
BlackRock’s acquisition of Preqin represents a strategic move that underscores the company’s commitment to innovation and growth in the private markets data space. By integrating Preqin’s expertise and resources into its Aladdin platform, BlackRock can enhance its offerings and provide valuable insights for institutional investors and asset managers. The deal is expected to generate significant revenue for BlackRock and position the company for success in the evolving landscape of private markets data.
Overall, the acquisition of Preqin by BlackRock is a transformative step that highlights the importance of data and analytics in driving investment decisions and delivering value to clients. As the private markets data sector continues to expand, BlackRock is well-positioned to capitalize on this growth opportunity and solidify its position as a leader in the asset management industry.
