As part of its ongoing push into alternative investments, including commercial real estate, BlackRock has acquired data provider Preqin in a $3.22 billion deal. The transaction also illustrates the growing role data is playing for not only BlackRock but other companies that are using technologies such as artificial intelligence to make decisions.
"We see data powering the industry across technology, capital formation, investing and risk management," Rob Goldstein, BlackRock chief operating officer, said.
BlackRock expects the deal to close before the end of the year pending regulatory approvals.
Preqin will continue to be offered as a stand-alone service under BlackRock's ownership, but the private equity giant will also use its services to enhance its Aladdin proprietary software and "create a preeminent private markets technology and data provider."
"Private markets are the fastest growing segment of asset management," BlackRock said as it announced the transaction, noting that alternative assets are expected to reach nearly $40 trillion by the end of the decade.
Barclays acted as lead financial adviser to BlackRock in the deal, while Goldman Sachs was financial adviser to Preqin.
This is the second major acquisition BlackRock has made this year to expand into the private markets investing. In January it announced it was acquiring Global Infrastructure Partners for about $12.5 billion, to help it expand beyond offering primarily stocks and bonds. It also acquired Kreos Capital last year to expand in private debt. In 2019, it acquired eFront, a software provider enabling investors to assess private market assets.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
