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Key Takeaways
- BlackRock has acquired private markets data provider Preqin for $3.2 billion.
- The U.K.-based firm is expected to generate $240 million in recurring revenue this year.
- BlackRock estimates that private markets data has an estimated total addressable market of $8 billion, which could grow to $18 billion by 2030.
BlackRock ( BLK ) has agreed to buy private markets data provider Preqin in a £2.55 billion (US$3.2 billion) cash deal , the world’s largest asset manager announced Sunday.
In acquiring privately held UK firm Preqin, BlackRock is augmenting its Aladdin financial technology platform with an infusion of private market data and research tools. BlackRock expects the firm to bring in roughly $240 million in recurring revenue in 2024.
The transaction is expected to close by the end of the year.
Shares of BlackRock, which had more than $10 trillion in assets under management (AUM) as of April, rose about 0.6% in early trading Monday.
Private markets data represents an estimated total addressable market of $8 billion that is growing at a rate of 12% annually and could reach $18 billion by 2030, BlackRock said in a statement.
Preqin founder Mark O’Hare will join BlackRock as a vice chair.
“BlackRock is known for excellence in both investment management and financial technology, and together we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale,” O’Hare said in a statement.