BlackRock has acquired private markets data provider Preqin.
The firm, which is the world’s largest asset manager, will acquire 100 per cent of Preqin for a total consideration of US$3.2 billion ($4.8 billion). This will create a “pre-eminent” private markets technology and data provider, and add a complementary data business to the firm’s existing investment technology.
“There is an even greater need for standardised data, benchmarks, and analytics that enable investors to better incorporate private asset classes into portfolios and provide fund managers with better data and tools to deliver outcomes for clients. Private markets data is estimated to be an $8 billion total addressable market and growing 12 per cent per year, reaching US$18 billion by 2030,” the firm said in a statement.
Preqin provides data on asset classes such as private equity, venture capital, hedge funds, infrastructure, and real estate. It currently has 48,000 customers and 16 global offices, having been founded in 2002.
In 2024, Preqin is expected to generate US$240 million of highly recurring revenue and has grown approximately 20 per cent per year in the last three years.
Founder Mark O’Hare will join BlackRock as vice chair after the completion of the transaction.
He said: “BlackRock is known for excellence in both investment management and financial technology, and together we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale.”
Rob Goldstein, chief operating officer of BlackRock, said: “BlackRock’s vision has always been to bring together investments, technology, and data to offer solutions that meet our clients’ needs across their whole portfolio. 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.”
The deal is expected to close by the end of 2024 subject to regulatory approval.
