BlackRock Acquires Preqin for $3.2 Billion

By Tamara Parker • Tuesday, July 02 02:09 • Permanent Link

The press release reveals that BlackRock, Inc. has agreed to acquire Preqin, a leading independent provider of private markets data, for approximately $3.2 billion in cash. This acquisition is expected to transform BlackRock's private markets capabilities, expanding its total addressable market by $8 billion. Preqin is projected to generate approximately $240 million in highly recurring revenue by 2024, reflecting a growth rate of about 20% per year over the last three years.

Furthermore, Preqin's global coverage includes 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, serving over 200,000 users. The private markets data segment is estimated to be an $8 billion total addressable market and is growing at a rate of 12% per year, projected to reach $18 billion by 2030.

BlackRock's Aladdin platform currently serves over 1,000 clients, and the combination of Preqin with Efront, Aladdin’s private markets solution, aims to integrate data, research, and the investment process for fund managers and investors across various aspects of private markets investing.

The press release also outlines that the transaction is expected to close before the end of 2024, subject to regulatory approvals and other customary closing conditions.

The acquisition of Preqin by BlackRock is seen as a strategic move to cater to the increasing demand for private markets data and analytics, as institutional and wealth investors continue to increase their allocations to alternatives. This acquisition aims to bridge the transparency gap between public and private markets through data and analytics, offering a substantial opportunity for BlackRock to deliver better private markets data and analytics to its clients at scale.

The founder of Preqin, Mark O’Hare, will join BlackRock as a vice chair after the completion of the transaction, and Christoph Knaack, the CEO of Preqin, expressed excitement about the opportunities presented by this next phase of growth in conjunction with BlackRock.

The terms of the transaction indicate that BlackRock will acquire 100% of the business and assets of Preqin for a total consideration of approximately $3.2 billion in cash.

As a result of these announcements, the company's shares have moved -0.6% on the market, and are now trading at a price of $782.27. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.