BlackRock is set to acquire UK-based data firm Preqin for $3.2 billion, enhancing its position in the alternative investments market. This follows BlackRock’s recent acquisition spree, including Global Infrastructure Partners for $12.5 billion. The Preqin deal will complement BlackRock’s Aladdin tech platform, integrating data, research, and investment processes. Preqin, expected to generate $240 million in recurring revenue in 2024, will continue to operate as a standalone entity.
BlackRock has agreed to purchase UK data foundation Preqin for 2.55 billion pounds ($3.23 billion) in hand money in a further enhancement by the globe’s biggest asset management company into alternative investments.
BlackRock, which maintains more than $10 trillion, is seeking to capitalize on a boom in the market from investors for alternative assets, which contains anything from personal equity to infrastructure. In January, BlackRock expressed a deal to purchase Global Infrastructure Partners (GIP) for $12.5 billion, while other investment foundations have also struck recent deals.
The asset director beat out rival potential bidders, which sources expressed to Reuters last month included London Stock Exchange Group, and S&P Global, for Preqin following a bidding procedure and after its owners had decided on a full sale of the corporation.
Demand for economical data and research has led to a wave of dealmaking in the sector in recent years. Among the largest was S&P World’s $44 billion all-stock purchase of IHS Markit that was completed in 2022.
In an argument, BlackRock said that the acquisition would complement its Aladdin tech corporation by bringing together data, research, and investment processes for loan managers.
Aladdin is BlackRock’s portfolio maintenance software which offers investment experts a way to view and maintain daily investments.
Together with Preqin, we can make personal markets investing easier and more useful while building a better-connected platform for investors and fund maintenance.., said Sudhir Nair, global head of BlackRock’s Aladdin.
Preqin will also resume to be provided as a standalone solution, the corporation said.
Preqin is expected to create about $240 million of recurring revenue in 2024 and has developed about 20% per year in the last three years, BlackRock said in its report.
Preqin, which was built in 2003, specializes in data about the alternative investment corporation. The UK-based company has subscribers in more than 90 nations, according to the British government’s register of corporations.
Its director Mark O’Hare will join BlackRock as a vice chair after the end of the transaction.