UK Competition Watchdog Probes $3.22 Billion BlackRock-Preqin Deal

The UK's Competition and Markets Authority (CMA) has launched an investigation into BlackRock's $3.22 billion acquisition of Preqin, a leading provider of private markets data. The probe aims to assess the potential impact of the deal on competition within the UK market for goods and services. This article explores the implications of the acquisition on competition, barriers to entry, and pricing dynamics in the private markets data sector.



The CMA is investigating whether the acquisition, if carried into effect, will result in the creation of a relevant merger situation under the Enterprise Act 2002. If so, the authority will determine whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom. The CMA has invited comments from interested parties until December 17, 2024, to assess the impact of the transaction on competition in the UK.

The acquisition of Preqin by BlackRock could potentially create barriers to entry for new players in the market. Preqin's extensive database of private markets data, covering 190,000 funds, 60,000 fund managers, and 30,000 investors, is highly sought after. Post-acquisition, BlackRock's Aladdin platform will integrate Preqin's data, creating a formidable, unified platform. This integration could make it challenging for new entrants to match the scale and comprehensiveness of BlackRock's offering. Additionally, Preqin's strong relationships with clients, built over 20 years, could further fortify BlackRock's position, making it difficult for new players to establish similar connections.



The integration of Preqin's data and Aladdin's workflow capabilities will likely intensify competition among private markets data providers. BlackRock's acquisition of Preqin combines Preqin's extensive private markets data with Aladdin's complementary workflow tools, creating a formidable platform. This integration will enable BlackRock to offer a comprehensive solution for investors and fund managers, bridging the transparency gap between public and private markets. As a result, competitors may face increased pressure to innovate and enhance their offerings to maintain market share.

The acquisition of Preqin by BlackRock could significantly impact the pricing and accessibility of private markets data for investors and fund managers. Preqin, a leading independent provider of private markets data, empowers investors with data and insights that increase transparency and access across the global alternatives market. With a 20-year history, Preqin covers 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, reaching over 200,000 users. BlackRock's acquisition of Preqin could lead to improved data integration and analytics, potentially making private markets data more accessible and affordable for a broader range of investors. However, the impact on pricing remains uncertain, as BlackRock may choose to leverage Preqin's data to enhance its existing services or create new revenue streams.

In conclusion, the CMA's probe into the BlackRock-Preqin acquisition highlights the potential implications of the deal on competition within the UK market for goods and services. The acquisition could create barriers to entry for new players and intensify competition among private markets data providers. The impact on pricing and accessibility of private markets data remains uncertain, as BlackRock may choose to leverage Preqin's data to enhance its existing services or create new revenue streams. Investors and fund managers should closely monitor the CMA's investigation and the potential outcomes of the acquisition to make informed decisions about their investments in the private markets data sector.