BlackRock's Acquisition of Preqin: A New Era for Private Markets

BlackRock's recent acquisition of Preqin, a leading independent provider of private markets data, marks a significant milestone in the evolution of the private markets landscape. This strategic move positions BlackRock as a preeminent private markets technology and data provider, offering a comprehensive solution for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance reporting. By integrating Preqin's data and research tools with BlackRock's Aladdin platform, the company aims to transform private markets investing and drive innovation in the asset management industry.

The acquisition of Preqin brings several strategic advantages to BlackRock, including:

1. Expansion into the fast-growing private markets data segment: By acquiring Preqin, BlackRock is expanding its capabilities into the rapidly growing private markets data segment, which is expected to reach $18 billion by 2030. This move unlocks an additional $8 billion total addressable market for BlackRock (BLK, press release, 2024/06/30).
2. Integration of complementary data and technology: The acquisition adds a highly complementary data business to BlackRock's investment technology, enabling the integration of Preqin's data and research tools with Aladdin's workflow capabilities. This unification will create a preeminent private markets technology and data provider, offering a comprehensive solution for fund managers and investors (BLK, press release, 2024/06/30).
3. Enhanced private markets technology and data offerings: The integration of Preqin's data with the Aladdin platform will drive standardization and transparency in private markets, which have traditionally been less accessible and more opaque compared to public markets. This move is expected to set a new benchmark for data-driven investment strategies, influencing how other asset managers approach private markets (BLK, event transcript, 2024/07/01).
4. Expanded client base and recurring revenue: The acquisition brings in approximately $240 million in recurring revenue for 2024 and expands BlackRock's client base by adding over 4,000 relationships across general partners, limited partners, and service providers. This growth in revenue and client base will strengthen BlackRock's financial position and market reach (BLK, press release, 2024/06/30).
5. Talent acquisition and leadership continuity: Preqin founder Mark O'Hare will join BlackRock as a Vice Chair after the close of the transaction. His expertise and leadership will ensure continuity during the integration process and contribute to BlackRock's ongoing success in the private markets data segment (BLK, press release, 2024/06/30).

The acquisition of Preqin by BlackRock is expected to significantly enhance BlackRock's ability to provide better private markets data and analytics, with implications for increased transparency, data-driven investment strategies, accelerated adoption of private market investments, and expansion into alternative investments. This move underscores the growing importance of private markets and sets a new benchmark for data-driven investment strategies in the asset management industry.

In conclusion, BlackRock's acquisition of Preqin establishes a preeminent private markets, technology, and data provider, offering a comprehensive solution for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance reporting. By integrating Preqin's data and research tools with BlackRock's Aladdin platform, the company aims to transform private markets investing and drive innovation in the asset management industry.