BlackRock has agreed to acquire UK data firm Preqin for £2.55 billion ($3.23 billion) in cash, marking a significant expansion into alternative investments by the world's largest asset management company.
With over $10 trillion under management, BlackRock aims to capitalise on increasing investor demand for alternative assets, ranging from private equity to infrastructure. Earlier this year, BlackRock announced a $12.5 billion deal to acquire Global Infrastructure Partners (GIP), aligning with recent trends where investment firms have pursued similar expansions.
BlackRock secured the acquisition of Preqin after a competitive bidding process that included contenders like the London Stock Exchange Group and S&P Global, following Preqin's decision to pursue a complete sale of the business. The growing demand for financial data and research has fueled numerous deals in the sector, exemplified by S&P Global's $44 billion acquisition of IHS Markit in 2022.
In a statement, BlackRock highlighted that the acquisition of Preqin would complement its Aladdin technology platform, integrating data, research, and investment processes for fund managers. Aladdin, BlackRock's portfolio management software, is crucial in providing investment professionals with tools to oversee daily investments.
Sudhir Nair, global head of BlackRock's Aladdin, emphasised the strategic synergy: "Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers."
