BlackRock said that the acquisition would complement its Aladdin tech business. (Photo: Reuters)
BlackRock has agreed to buy UK data firm Preqin for 2.55 billion pounds ($3.23 billion) in cash in a further expansion by the world’s biggest asset management company into alternative investments.
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BlackRock, which manages more than $10 trillion, is seeking to capitalise on a boom in demand from investors for alternative assets, which includes anything from private equity to infrastructure. In January BlackRock announced a deal to buy Global Infrastructure Partners (GIP) for $12.5 billion, while other investment firms have also struck recent deals.
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The asset manager beat out rival potential bidders, which sources told Reuters last month included London Stock Exchange Group, and S&P Global, for Preqin following a bidding process and after its owners had decided on a full sale of the business.
Demand for financial data and research has led to a wave of dealmaking in the sector in recent years. Among the biggest was S&P Global’s $44 billion all-stock purchase of IHS Markit that completed in 2022.
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In a statement, BlackRock said that the acquisition would complement its Aladdin tech business by bringing together data, research, and investment process for fund managers.
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Aladdin is BlackRock’s portfolio management software which provides investment professionals a way to view and manage daily investments.
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“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 BlackRock’s Aladdin.
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Preqin will also continue to be offered as a standalone solution, the company said.
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Preqin is expected to generate about $240 million of recurring revenue in 2024 and has grown approximately 20% per year in the last three years, BlackRock said in its statement.
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Preqin, which was founded in 2003, specialises in data about the alternative investment industry. The UK-based company has subscribers in more than 90 countries, according to the British government’s register of companies.
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Its founder Mark O’Hare will join BlackRock as a vice chair after the close of the transaction. The Financial Times reported on the deal earlier.
First Published: Jul 01 2024 | 2:57 PM IST