BlackRock has agreed to acquire private markets data provider Preqin in a £2.55 billion transaction, expanding its private markets capabilities.
Through the acquisition, BlackRock will combine its Aladdin workflow capabilities with Preqin’s data and research tools to create a private markets technology and data provision.
Mark O’Hare, Preqin’s founder, will join BlackRock as vice chair once the transaction has closed.
The acquisition follows significant growth in the private markets sector, with institutional and wealth investors increasing their allocations to alternatives. To incorporate private asset classes into portfolios and provide fund managers with better data and tools to deliver positive outcomes for clients, investors require standardised data, benchmarks and analytics, BlackRock said.
Rob Goldstein, chief operating officer at BlackRock, commented: “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.
“Every acquisition has been an opportunity to strengthen our capabilities for clients—and in fact, we have been a client of Preqin for many years, and we look forward to welcoming the talented Preqin team to BlackRock.”
O’Hare added: “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. I look forward to joining BlackRock and continuing to play a role in the continued growth and success of Preqin and our customers.”
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