BlackRock has completed its acquisition of private markets research house Preqin.
The deal, which was first announced last July, saw BlackRock 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, it said, as private markets are expected to reach $30 trillion by the end of the decade.
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.
Now part of BlackRock, Preqin will remain available as a standalone solution while joint customers will benefit from product integrations, such as access to data analytics tool Aladdin. Over time, BlackRock said it will integrate Preqin’s proprietary data and research tools with Aladdin and investment software eFront, which BlackRock acquired in 2019.
Following the completion of the transaction, Preqin founder Mark O’Hare joined BlackRock as a vice chair.
Rob Goldstein, BlackRock’s chief operating officer, said: “BlackRock is a perpetual reinvention machine, evolving continuously to stay ahead of our clients’ rapidly changing needs. Today clients are seeking a ‘common language’ for investing that requires better data to drive investment decisions, manage risk, and construct portfolios.
“With Preqin, a part of BlackRock, we will seek to meet this need, accelerating clients’ ability to allocate to the growth of private markets and furthering our aspirations to deliver greater value across their whole portfolios.”
O’Hare said: “By marrying Preqin with BlackRock’s technology offering, we are even better placed to tackle this challenge and help clients build more diverse, resilient portfolios by delivering the transparency and insights they seek.”
Private markets have grown in popularity in recent years, with numerous fund managers making forays into the space, and traditional asset managers have been warned they risk missing out if they fail to have a presence.
This includes HMC Capital which acquired Payton Capital, and GQG Partners which acquired three boutiques from Pacific Current for US$71 million with the intention of setting up a private capital solutions division. Since then, GQG has raised $145 million for its first private markets fund.
