US investment company BlackRock to buy UK-based data provider Preqin for USD3.2B
(MENAFN) BlackRock, a prominent US-based investment company, has announced its Acquisition of UK-based private markets data firm Preqin for approximately USD3.2 billion in cash. The acquisition underscores BlackRock's strategic move into the rapidly growing private markets sector, which is anticipated to expand significantly in the coming years.
In a statement released late Sunday, BlackRock highlighted that private markets represent the fastest-growing segment of asset management, with alternative assets expected to approach nearly USD40 trillion by the end of the decade. The private markets data industry itself is estimated to be worth USD8 billion, growing at a rate of 12 percent annually and projected to reach USD18 billion by 2030.
Preqin, known for its comprehensive global coverage, serves over 200,000 users including asset managers, insurers, pensions, wealth managers, banks, and other service providers. The firm provides data on 190,000 funds, 60,000 fund managers, and 30,000 private markets investors, positioning itself as a crucial player in the private markets data ecosystem.
According to Rob Goldstein, BlackRock's chief operating officer, the acquisition of Preqin aligns with evolving client needs from product selection to portfolio construction, requiring robust technology, data, and analytics that can facilitate a unified approach across public and private markets.
Preqin is expected to generate approximately USD240 million in recurring revenue this year, marking a consistent growth rate of around 20 percent annually over the past three years. This acquisition is poised to enhance BlackRock's capabilities in technology, capital formation, investing strategies, and risk management, aiming to solidify its leadership in the asset management industry.
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