BlackRock enhances alts data with $3.2B Preqin acquisition

BlackRock enhances alts data with $3.2B Preqin acquisition
Asset manager will gain valuable insights into risks, opportunities.
JUL 01, 2024
By  Bloomberg

BlackRock Inc. will acquire private capital database provider Preqin for £2.55 billion ($3.2 billion) in cash, as the world’s largest money manager accelerates its push to become a major player in alternative assets.

The acquisition deepens BlackRock’s ability to oversee risks and analyze data across fast-growing markets for private assets, and also expands its Aladdin technology systems, the New York-based firm said in a statement on Sunday. 

“We see data powering the industry across technology, capital formation, investing and risk management,” Rob Goldstein, BlackRock chief operating officer, said in the statement.

Private markets are the fastest growing part of asset management, with alternative assets expected to reach nearly $40 trillion by the end of the decade, according to BlackRock’s statement. That’s prompting surging demand from investors for relevant data with the total addressable market expected to reach $18 billion by 2030, up from around $8 billion today.

For BlackRock Chief Executive Officer Larry Fink, the deal would be a second major acquisition this year to expand into the fast-growing world of private markets investing. The firm announced a deal in January to acquire Global Infrastructure Partners for about $12.5 billion, a landmark move to expand its offerings beyond primarily stocks and bonds. 

BlackRock, with $10.5 trillion in client assets at the end of March, also acquired Kreos Capital last year to expand in private debt. In recent years, the firm has been building out its technology and risk-management businesses. In 2019, BlackRock acquired eFront, a software provider enabling investors to assess private market assets.

Preqin covers 190,000 funds, 60,000 fund managers and 30,000 private markets investors, according to the statement. It’s used by money managers, insurers, pensions and wealth managers, among others, and has grown approximately 20% per year in the past three years.

The transaction is expected to close before the end of the year, subject to regulatory and other necessary approvals. 

Preqin competes with Bloomberg LP, the parent of Bloomberg News.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.