BlackRock, the world’s largest asset manager, announced that it has agreed to purchase UK data firm Preqin for £2.55bn, in a deal which sees it move further into the alternative investments data segment and financial information provision.
Preqin is a 20-year-old London-based data investment company that supplies financial data and analysis of the alternative asset management market, while also tracking hedge funds and private equity. Its data and insight services help investors make better decisions by increasing transparency and access.
It currently claims over 200,000 users alongside subscribers in over 90 countries, while providing data on approximately 30,000 investors and 60,000 fund managers.
Over the past three years, its revenue has grown more than 20% annually, boosted by the surge in private capital, the fastest growing segment of asset management.
CEO Larry Fink said the Preqin deal is fundamental to the money manager’s continued growth.
BlackRock is planning to keep Preqin as a distinct standalone product, but also absorb the data, which will feed into the company’s eFront and Aladdin risk management platforms, providing investment professionals with the ability to monitor and manage daily investments.
BlackRock said the acquisition would align with Aladdin’s tech business by integrating the data, research and investment process for fund managers. The transaction is scheduled to close later in 2024, and is predicted to bring in £189.3m of estimated revenue this year.
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