BlackRock to buy Preqin

In a bid to capitalise on the increase in demand from investors for alternative assets, BlackRock announced its plans to buy Preqin for nearly USD 3.23 billion in cash. The move follows BlackRock’s USD 12.5 billion deal to acquire Global Infrastructure Partners (GIP) from January 2024, with the company aiming to solidify its presence in the alternative assets market. In addition, Preqin’s owners decided to fully sell the business, with bidders, besides BlackRock, including the London Stock Exchange Group and S&P Global.

BlackRock has entered an agreement to acquire UK-based data firm Preqin for GBP 2.55 billion in cash and further expand its presence in alternative investments.

BlackRock’s development strategy

According to BlackRock’s officials, the acquisition of Preqin is set to complement the company’s Aladdin tech business by merging data, research, and investment processes for fund managers. Being the company’s portfolio management software, Aladdin focuses on allowing investment professionals to view and manage daily investments. By completing the acquisition process of Preqin, BlackRock intends to improve and optimise private markets investing and increase its accessibility while also creating a connected platform for investors and fund managers. However, Preqin is set to also be provided as a standalone solution.

Furthermore, as detailed by BlackRock, Preqin is projected to generate approximately USD 240 million of recurring revenue in 2024, with the company expanding nearly 20% per year since 2021. Launched in 2003, Preqin focuses on data regarding the alternative investment industry. Currently, the company’s subscriber base spans over 90 countries, according to the information provided by the British government’s register of companies.

Before the current news, BlackRock launched its retirement income solution, LifePath Paycheck, in defined contribution plans. The solution was set to deliver an additional method for retirement income, providing assured funds through target date funds. BlackRock’s LifePath Paycheck service could be accessed by participants over the age of 59 via annuity contracts from Equitable and Brighthouse Financial. Also, the company developed MyLifePath, a digital experience for showing how contributions could translate into income in retirement, to support the education of participants.

BlackRock to acquire Preqin

BlackRock’s development strategy