BlackRock to Acquire Preqin for $3.2 Billion

Acquisition Details: BlackRock (NYSE: BLK) will acquire Preqin, a leading private markets data provider, for £2.55 billion ($3.2 billion) in cash.
Strategic Expansion: This acquisition expands BlackRock’s Aladdin tech business into the private markets data segment, unlocking an $8 billion total addressable market.
Enhanced Capabilities: Combining Preqin’s data tools with Aladdin’s workflow capabilities will create a unified private markets technology and data platform.
Client Growth: Preqin adds over 4,000 relationships and ~$240 million in highly recurring 2024E revenue, enhancing BlackRock’s client base.
Market Potential: Private markets, the fastest-growing asset management segment, are expected to reach $40 trillion by 2030, with private markets data projected to grow to $18 billion.
Preqin’s Role: Preqin provides data and insights for 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, serving over 200,000 users globally.
Integration with Aladdin: The acquisition integrates Preqin with Aladdin’s private markets solution, eFront, enhancing fundraising, deal sourcing, portfolio management, and performance analytics.
Leadership Statements: BlackRock’s COO, Rob Goldstein, and Global Head of Aladdin, Sudhir Nair, highlight the acquisition’s potential to improve private markets investing. Preqin’s Founder, Mark O’Hare, and CEO, Christoph Knaack, express excitement for the growth opportunities with BlackRock.
Closing and Advisors: The transaction is expected to close by the end of 2024, pending regulatory approvals. Barclays and Skadden, Arps, Slate, Meagher & Flom advised BlackRock, while Goldman Sachs International and Macfarlanes advised Preqin.