BlackRock to Acquire Alternatives Data Provider Preqin

BlackRock Inc. today announced it will acquire private markets data provider firm Preqin Ltd. in a $3.2 billion deal as BlackRock aims to expand its offerings to clients in the fast-growing private markets sector.

According to an investor presentation, BlackRock sees the demand for private markets data increasing as alternative asset classes grow in popularity; the firm projects the alternatives markets to grow to $39 trillion in 2030 from $12 trillion in 2020. Likewise, BlackRock projects the total addressable market for private markets data spend to grow to $18 billion in 2030 from $8 billion in 2024.

As BlackRock aims to become an end-to-end provider in the private markets, the acquisition of Preqin provides synergies with the firm’s other business units, such as its alternatives investment management arm, eFront, and its Aladdin investment and risk management platform.

“This acquisition is about driving evolution and growth in the private markets,” said BlackRock Chairman and CEO Larry Fink in a call with investors on Monday. Fink said BlackRock could bring the principles of indexing to the private markets in the “democratization of all alternatives.”

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Fink said the goal of the acquisition is to bridge the gap between the public and private markets. “There is a large gap in private asset transparency relative to the public markets,” said a BlackRock staff member on the call. “We believe this gap will be narrowed with technology and data.”

According to a press release, Preqin collects data on more than 190,000 funds, 60,000 fund managers and 30,000 private markets investors. The company has more than 200,000 users across more than 4,000 clients. BlackRock stated it expects Preqin to generate $240 million in annual recurring revenue.

The acquisition is expected to close before year-end 2024. Preqin staff will join BlackRock’s in its offices worldwide.