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Market Analysis

BlackRock Acquires UK Data Group Preqin for $3.2 Billion
Amos Simanungkalit · 47.9K Views

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BlackRock (NYSE: BLK) has agreed to acquire UK data firm Preqin for £2.55 billion ($3.23 billion) in cash, marking a significant move by the world's largest asset management company into alternative investments.

With assets under management exceeding $10 trillion, BlackRock aims to capitalize on increasing investor demand for alternative assets, spanning private equity to infrastructure. Earlier this year, BlackRock announced the acquisition of Global Infrastructure Partners (GIP) for $12.5 billion, amidst a flurry of similar deals by other investment firms.

BlackRock emerged victorious in a competitive bidding process, reportedly beating out potential rivals such as London Stock Exchange Group (LSEG) and S&P Global for Preqin, following the decision by Preqin's owners to pursue a full sale.

The surge in demand for financial data and research has fueled numerous mergers and acquisitions within the sector, exemplified by S&P Global's $44 billion all-stock acquisition of IHS Markit completed in 2022.

In a statement, BlackRock highlighted that acquiring Preqin would complement its Aladdin technology platform, integrating data, research, and investment processes for fund managers.

Aladdin, BlackRock's portfolio management software, provides investment professionals with tools for daily investment management.

According to Sudhir Nair, global head of BlackRock's Aladdin, "Together with Preqin, we can enhance the accessibility and efficiency of private markets investing, while establishing a more interconnected platform for investors and fund managers."

Preqin will continue to operate as a standalone solution, BlackRock confirmed.

BlackRock anticipates that Preqin will generate approximately $240 million in recurring revenue in 2024, with an annual growth rate of around 20% over the past three years, according to their statement.

Founded in 2003, Preqin specializes in data pertaining to the alternative investment industry, serving subscribers across more than 90 countries, according to UK government records.

Following the transaction's closure, Preqin founder Mark O'Hare will join BlackRock as a vice chair, as reported earlier by the Financial Times.

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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