BlackRock has announced the strategic acquisition of Preqin, a prominent provider of data, analytics, and insights for the alternative assets business, for $3.2 billion. The move is intended to strengthen BlackRock’s capabilities in the private market data space. With this transaction, BlackRock has significantly expanded its technology and analytical capabilities inside the investment management industry.
BlackRock will incorporate Preqin’s extensive data coverage on alternative assets such as hedge funds, private equity, and venture capital into its current technology and data platforms. BlackRock anticipates using the acquisition to improve client service and gain deeper insights, particularly in the quickly expanding alternative investing market.
BlackRock’s Chief Operating Officer, Rob Goldstein, made the following statement regarding the acquisition: “We see data powering the industry across technology, capital formation, investing, and risk management.” He went on to say, “Preqin’s data and analytics will significantly enhance our ability to provide our clients with innovative solutions and insights.”
The market for alternative assets has expanded significantly in recent years as more and more investors seek to diversify their portfolios beyond conventional asset types. Preqin is well-known in the industry for its robust data and analytical tools, which offer insightful information on investor behavior, fund performance, and market trends. BlackRock hopes to lead this trend by acquiring Preqin and providing clients with better tools to manage the intricate world of alternative investments.
The acquisition is consistent with BlackRock’s overarching plan to use data and technology to spur innovation and growth. The business has recently made significant investments in its technological platforms, developing its Aladdin risk management system and acquiring personalized indexing provider Aperio in 2020, among other initiatives.
Preqin’s CEO and founder, Tim Friedman, expressed excitement over the acquisition, saying, “Preqin and our clients will greatly benefit from our partnership with BlackRock.” Thanks to BlackRock’s size and resources, we will be able to accelerate our growth and innovation and provide our users with even more value.
As Preqin’s integration with BlackRock’s operations moves forward, the focus will be on improving data quality, extending analytical capabilities, and creating new solutions to satisfy investors’ changing needs. Pending regulatory clearances and customary closing requirements, the transaction is anticipated to close in the second part of the year.
BlackRock’s dedication to staying ahead of market trends and giving its clients access to cutting-edge resources and insights is demonstrated by this step. BlackRock is well-positioned to continue leading the industry in technical innovation and superior investment management with the inclusion of Preqin’s vast data and analytics capabilities.
