As per the sources, BlackRock is said to have agreed to buy UK data firm Preqin for 2.55 billion pounds which comes to about USD 3.23 billion in cash. This acquisition is being carried out to further expand itself from the world's biggest asset management company into the alternative investments realm.
BlackRock manages more than USD 10 trillion and is seeking to capitalize on a boom in demand from investors for alternative assets. This includes right from private equity to infrastructure. While other investment firms have also struck recent deals, BlackRock had announced a deal to buy Global Infrastructure Partners (GIP) for USD 12.5 billion in January. Following a bidding process and after its owners had decided on a full sale of the business, the asset manager beat out rival potential bidders which included the likes of London Stock Exchange Group, and S&P Global for Preqin.
Furthermore, in recent years, demand for financial data and research has led to a wave of dealmaking in the space. Among the biggest was S&P Global's USD 44 billion all-stock purchase of IHS Markit which was completed in the year 2022. And by bringing together data, research, and investment processes for fund managers, BlackRock said in a statement that the acquisition would complement its Aladdin tech business. While, if we speak of Aladdin, it is BlackRock's portfolio management software which provides investment professionals a new way to view and manage daily investments.
"Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers..," said Sudhir Nair, Global Head at BlackRock's Aladdin. The company also said that Preqin will also continue to be offered as a standalone solution.
Also, as per the statement made by BlackRock, Preqin is expected to generate nearly USD 240 million of recurring revenue in 2024 and currently has grown approximately 20 percent per year in the last three years. Founded in 2003, Preqin specializes in data pertaining to the alternative investment industry. And according to the British government's register of companies, this UK-based company has subscribers across more than 90 countries. And to add, its founder Mark O'Hare will join BlackRock as a Vice Chairman after the close of the transaction.
