BlackRock to Acquire Preqin for $3.2B

BlackRock's Acquisition of Preqin to Strengthen Alternative Asset Position

BlackRock Inc., the world's largest money manager, is poised to acquire Preqin, a private capital database provider, for £2.55 billion ($3.2 billion) in cash. This strategic move reinforces BlackRock's commitment to expanding its presence in alternative assets, enhancing risk management, and bolstering its Aladdin technology systems.

Key Takeaways

• BlackRock's acquisition of Preqin for £2.55 billion aims to boost its position in alternative assets.
• The deal will enhance BlackRock's data analysis and risk management capabilities through access to Preqin's extensive database.
• Preqin's database includes 190,000 funds, 60,000 fund managers, and 30,000 private markets investors.
• This acquisition signifies BlackRock's expansion beyond traditional stocks and bonds.
• The transaction is projected to close by the end of the year, pending regulatory approvals.

Analysis

BlackRock's acquisition of Preqin aligns with its strategy to harness Preqin's data to fortify risk management and investment strategies in alternative assets. This move could potentially disrupt the market by providing BlackRock with a substantial advantage in data analytics and market insights, potentially reshaping industry standards for data utilization in investment strategies.

Did You Know?

• Alternative Assets: Refer to investment types beyond traditional stock and bond holdings, such as private equity, hedge funds, real estate, commodities, and infrastructure. This acquisition aims to bolster BlackRock's position in these less-regulated markets, offering higher returns but also higher risks.
• Aladdin Technology Systems: BlackRock's proprietary risk management and operations platform, Aladdin, integrates portfolio management, risk analytics, and operations tools. The addition of Preqin's data will enhance Aladdin's capabilities in analyzing and managing risks in private asset markets.
• Private Capital Database: Preqin provides comprehensive data and analytics on private markets, including private equity, venture capital, private debt, real estate, and infrastructure. This acquisition signifies BlackRock's intent to leverage detailed data to optimize its strategies in alternative assets.