- Takeover marks BlackRock’s expansion into alternative investments
British financial data firm Preqin has agreed to a £2.55billion all-cash takeover by the world’s biggest fund manager, BlackRock.
Blackrock, which has more than $10trillion in assets under management, is understood to have beaten rival bidders including London Stock Exchange Group and rating agency S&P Global, according to Reuters, after Preqin put itself up for sale.
The takeover marks the US investment giant’s expansion into alternative investments as it attempts to cash-in on booming investor demand for assets like private equity, property and infrastructure.
BlackRock followed similar deals completed by rival asset managers with the $12.5billion takeover of Global Infrastructure Partners in January.
Similarly the demand for financial data and research has sparked a wave of dealmaking in recent years.
S&P Global’s $44billion all-stock purchase of IHS Markit in 2022 marked one of the most significant examples.
BlackRock said the acquisition of Preqin would complement its portfolio management software business Aladdin by bringing together data, research, and investment process for fund managers.
Global head of Aladdin Sudhir Nair said: ‘Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers.’
Preqin, which is expected to generate about $240million of recurring revenue in 2024 and has grown approximately 20 per cent per year in the last three years, will also continue to be offered as a standalone solution, the company said.
Founded in 2003, London-based Preqin specialises in data about the alternative investment industry. The UK-based company has subscribers in more than 90 countries, according to Companies House.
Its founder Mark O’Hare will join BlackRock as a vice chair after the close of the transaction.
O’Hare said: ‘BlackRock is known for excellence in both investment management and financial technology, and together we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale.’
Preqin chief executive Christoph Knaack added: ‘Private markets continue to evolve and so is Preqin.
‘I am incredibly excited about the opportunities this next phase of growth, together with BlackRock, promises our customers and our employees.’
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