BlackRock has agreed to acquire Preqin, a UK-based independent provider of private markets data for £2.55bn ($3.2bn) in cash, bringing together Preqin’s data and research tools with Aladdin’s workflow capabilities in a unified platform.
According to a press statement: “the acquisition adds a highly complementary data business to BlackRock’s investment technology, marking a strategic expansion into the fast-growing private markets data segment”.
With a 20-year history, Preqin provides global coverage of 190,000 funds, 60,000 fund managers and 30,000 private markets investors, reaching more than 200,000 users, including asset managers, insurers, pensions, wealth managers, banks, and other service providers. In 2024, Preqin is expected to generate ~$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 1,000 clients. The company says that the combination of Preqin with eFront, Aladdin’s private markets solution, brings together the data, research, and investment process for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance. Preqin will also continue to be offered as a standalone solution.
“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 of Aladdin. “This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics.”
Under the terms of the transaction, BlackRock will acquire 100% of the business and assets of Preqin for total consideration of £2.55bn or approximately $3.2bn in cash. The transaction is expected to close before year-end 2024, subject to regulatory approvals and other customary closing conditions.
Barclays served as lead financial advisor to BlackRock, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel. Goldman Sachs International served as the sole financial advisor, and Macfarlanes acted as legal counsel, to Preqin.
