Acquisition Finalized: BlackRock has secured Preqin, enhancing its prowess in private market operations
BlackRock Acquires Preqin to Bolster Private Markets Offerings
In a significant move to address the growing demand for private market investments, BlackRock has finalized its acquisition of Preqin. The deal, which adds approximately $60 million in quarterly revenue, brings deep data on private credit, infrastructure, real estate, private equity, and liquid alternatives to BlackRock's growing private markets AUM.
With the addition of Preqin, BlackRock aims to provide investors with better tools to navigate private markets. Mark O'Hare, Preqin's founder and now Vice Chairman at BlackRock, brings his leadership and expertise in private markets data to further strengthen BlackRock's expansion in the sector.
One of the key benefits of the acquisition is the enhanced transparency and analytics it offers. Preqin’s data assets integrate with BlackRock’s platforms, including the AI-powered Aladdin system and eFront Insight Sustainability Tools. These tools provide climate and ESG analytics as well as risk quantification across both public and private markets, helping close a $400 billion+ ESG transparency gap that BlackRock identified.
The acquisition also creates synergies in AI and data integration. BlackRock leverages AI to analyze and synthesize large data sets, and the Preqin acquisition supports this by offering rich private market data. Combined with AI analytics, this enables more precise portfolio construction, thematic investing, and decision-making in private markets that traditionally suffer from opacity.
The acquisition also adds 1,600 employees to BlackRock's global workforce, complementing BlackRock’s other recent private markets deals. This consolidation enhances scale, distribution capabilities, and operational efficiency, aiding organic growth while maintaining operating leverage despite increased expenses linked to acquisitions.
Preqin will be integrated into BlackRock's operations but will continue to operate independently. Joint clients of BlackRock and Preqin will have immediate integrations, such as access to Preqin benchmarks within Aladdin and eFront.
The combination of Preqin's private markets intelligence with Aladdin and eFront's analytics and workflow capabilities is intended to bolster BlackRock's ability to deliver comprehensive investment solutions. However, no new information was provided about potential changes in Preqin's service or expertise for clients.
In summary, the acquisition strengthens BlackRock’s ability to deliver integrated investment solutions that span private market asset classes with enhanced transparency, data-driven insights, and AI-powered analytics—addressing key client demand for private market exposure combined with improved risk management and ESG reporting.
[1] BlackRock Press Release, "BlackRock Completes Acquisition of Preqin," 1 March 2023, link
[2] Financial Times, "BlackRock buys Preqin for $600m to expand private markets data," 1 March 2023, link
[3] Preqin Press Release, "Preqin Announces Agreement to be Acquired by BlackRock," 1 February 2023, link
[4] BlackRock Investment Institute, "ESG: The Next Frontier in Investing," 2022, link
- The acquisition of Preqin by BlackRock bolsters the finance giant's private equity portfolio, providing extensive data on private credit, infrastructure, real estate, and liquid alternatives.
- With the addition of Preqin, BlackRock aims to offer investors superior tools for navigating the private markets, leveraging AI and data integration to enable more precise portfolio construction.
- The consolidation of Preqin into BlackRock's operations not only increases their global workforce but also enhances transparency and analytics in private market investments.
