BlackRock acquires Preqin in $4.8bn deal

BlackRock has agreed to acquire Preqin for £2.55 billion or approximately US$3.2 billion ($4.8 billion) in cash.

BlackRock said bringing together Preqin's data and research tools with Aladdin's complementary workflow capabilities in a unified platform will create a preeminent private markets technology and data provider.

In 2024, Preqin is expected to generate around US$240 million of highly recurring revenue and has grown approximately 20% per year in the last three years.

Through the Aladdin platform, BlackRock provides technology solutions to over 1000 clients; the acquisition will grow that to more than 4000.

Preqin will continue to be offered as a standalone solution.

"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," BlackRock chief operating officer Rob Goldstein said.

"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."

BlackRock global head of Aladdin Sudhir Nair said the acquisition of Preqin will make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers.

"This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics," Nair said.

Preqin founder Mark O'Hare said he was looking forward to joining BlackRock and continuing to play a role in the continued growth of Preqin.

"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 our clients at scale," he said.

O'Hare will join BlackRock as a vice chair after the close of the transaction.

The transaction is expected to close before the end of the calendar year, subject to regulatory approvals and other customary closing conditions.