Focus on hedge fund and private equity databases! BlackRock acquires Preqin for £2.55 billion
After half a year, investment management giant BlackRock made another move to acquire a private data company. BlackRock CEO: Acquiring Preqin will not only strengthen BlackRock's layout in alternative assets, but also enhance the risk management capabilities of BlackRock's technology department
On Monday, according to sources cited by the media, the world's largest asset management giant BlackRock has agreed to acquire the UK private data company Preqin for £2.55 billion in cash (approximately $3.2 billion).
BlackRock CEO Larry Fink pointed out that the acquisition of Preqin is strategically significant as it not only strengthens BlackRock's presence in the alternative asset field but also enhances the risk management capabilities of BlackRock's technology department, thereby supporting the company's future growth.
Preqin focuses on tracking the performance of private equity and hedge funds, currently serving around 200,000 users with a database of approximately 60,000 fund managers and 30,000 investors. Over the past three years, Preqin's revenue has grown by over 20% annually, driven by the long-term prosperity of the private equity market. Analysts predict that by around 2030, the size of the private equity market will exceed $40 trillion.
BlackRock plans to keep Preqin as an independent product while also integrating its database into the company's Aladdin and eFront risk management products. The transaction is expected to be completed later this year.
This marks BlackRock's second significant acquisition in the private equity market within six months. In January of this year, BlackRock spent $12.5 billion to acquire a PE firm, Global Infrastructure Partners.
In recent years, asset management companies, private equity firms, and large information service providers have been actively acquiring various data suppliers to provide investors with more detailed financial market information services. For example, in 2020, S&P Global acquired IHS Markit for $44 billion, and the London Stock Exchange Group acquired Refinitiv for $27 billion. Private equity firms, on the other hand, focus more on acquiring smaller data companies. For instance, Permira acquired a majority stake in Reorg for $1.3 billion, which is a company providing distressed debt and bankruptcy information