BlackRock has officially completed its acquisition of private market data provider Preqin.
According to the financial giant, the deal marks a strategic expansion into the rapidly growing private markets data segment, which is expected to grow to an US$18 billion total addressable market by 2030.
BlackRock first announced the acquisition in July, noting the deal would complement its portfolio management software Aladdin and private markets solution eFront.
Under the terms of the transaction, BlackRock would acquire 100 per cent of the business and assets of Preqin for total consideration of £2.55 billion or approximately US$3.2 billion in cash.
Expounding on the details of the transaction in a statement this week, BlackRock said Preqin will extend BlackRock’s suite of technology offerings. While Preqin will remain available as a stand-alone solution, joint customers will also benefit from product integrations, such as access to Preqin benchmarks within Aladdin.
Moreover, the asset manager plans to integrate Preqin’s proprietary data and research tools with Aladdin and eFront, which it said would “transform” private markets investing across fundraising, deal sourcing, portfolio management, accounting and performance reporting.
“This strategic transaction strengthens BlackRock’s ability to serve clients’ whole portfolios – across public and private markets – by combining investment, technology and data solutions in one platform,” BlackRock said.
The announcement comes as private markets have become the fastest-growing segment of global investing, with alternative assets projected to reach US$30 trillion by the end of the decade, according to Preqin data.
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,” Goldstein added.
Moreover, BlackRock pointed out that institutional and wealth investors continue to increase allocations to these markets as they seek to optimise returns and diversify their long-term capital, yet these allocations have been artificially limited by a lack of transparency.
“For decades, investors in private markets have lacked the robust data they need to make fully informed decisions and incorporate private assets into their portfolios at scale,” Mark O’Hare, founder of Preqin, 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.”
Following the transaction, O’Hare has joined BlackRock as a vice chair.
