BlackRock's Aladdin Gets Smarter: $3.2B Deal Adds Preqin's Private Markets Data

BlackRock, Inc. BLK plans to acquire private markets data data solutions provider Preqin for £2.55 billion ($3.2 billion) in cash.

This acquisition enhances BlackRock’s investment technology by adding a complementary data business and expanding into the emerging private markets data segment.

With over 20 years of experience, Preqin covers 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, reaching over 200,000 users.

Preqin is expected to generate ~$240 million in 2024, with growth of 20% annually over the past three years.

BlackRock’s Aladdin platform, serving over 1,000 clients, will integrate Preqin with eFront to streamline data, research, and investment processes for fund managers and investors. Preqin will also continue as a standalone solution.

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The transaction is anticipated to close by year-end 2024, pending regulatory approvals and customary closing conditions.

Private markets are rapidly growing, expected to reach nearly $40 trillion by decade’s end. This sector’s data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.

Rob Goldstein, BlackRock Chief Operating Officer, said, “BlackRock’s vision has always been to bring together investments, technology, and data to offer solutions that meet our clients’ needs across their whole portfolio. As clients increasingly evolve their focus from choosing products to constructing portfolios, this shift requires technology, data, and analytics that create a ‘common language’ for investing across both public and private markets.”

As of March-end, BlackRock’s total AUM stood at $10.5 trillion.

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Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF and Capitol Series Trust The Nightview Fund NITE NITE.

Price Action: BLK shares closed higher by 0.79% at $787.32 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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