BlackRock buying Preqin for $3.2 billion as private markets interest surges

By Barbara Kollmeyer

A previous version of this article gave an incorrect spelling of Preqin in the headline. The story has been corrected.

BlackRock says it has agreed to buy privately held U.K. data group Preqin for $3.2 billion (GBP2.55 billion) in cash, a deal that allows an inroad into private markets information for the world's biggest asset manager.

BlackRock (BLK) said the purchase of Preqin, which provides independent data solutions for alternative markets, would add to its Aladdin financial technology platform, bringing together data, research and investment processes for fund managers and investors.

Preqin is expected to generate approximately $240 million of highly recurring revenue this year, and has seen growth of around 20% annually in the past three years, BlackRock said in a statement on Sunday.

"As clients increasingly evolve their focus from choosing products to constructing portfolios, this shift requires technology, data, and analytics that create a 'common language' for investing across both public and private markets. We see data powering the industry across technology, capital formation, investing, and risk management," said Rob Goldstein,BlackRock's chief operating officer.

BlackRock, which had $10.4 trillion in assets under management as of April, pointed out that the fast-growing segment of alternative assets is expected to reach $40 trillion by the end of a decade. Private markets data, meanwhile, is estimated to be an $8 billion total addressable market, with growth of 12% a year that is expected to reach $18 billion by 2030, said the money manager.

That has compounded the need for standardized data, benchmarks and analytics at help investors get those types of investments into their portfolios, BlackRock said.

BlackRock shares this year have declined 3%, underperforming the 14% rise for the S&P 500 SPX.

Preqin said it welcomed the deal, and that founder Mark O'Hare will join BlackRock as a vice chair after the close of the transaction. Preqin is owned by its management and employees, alongside Valhalla Ventures, the family holding company of O'Hare.

-Barbara Kollmeyer

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-01-24 0950ET

Copyright (c) 2024 Dow Jones & Company, Inc.