BlackRock Acquires Preqin for $3.2B to Transform Markets

As a researcher with a background in finance and experience following the trends in the asset management industry, I am particularly intrigued by BlackRock’s recent acquisition of Preqin. This strategic move is not only significant but also aligns with the current market dynamics.

I’m reporting that BlackRock Inc. has revealed its intent to acquire Preqin, a London-based organization renowned for providing private capital data, in a deal valued at around $3.2 billion. This acquisition is part of BlackRock’s strategy to expand indexing into the private markets sector, thereby making it more accessible and increasing visibility for private assets as an asset class.

At a recent investor conference, BlackRock CEO Larry Fink discussed the acquisition with ease and clarity, explaining that BlackRock intended to introduce the same degree of productivity found in index investing on public markets into the realm of private markets. “Index funds have revolutionized public markets,” Fink remarked, “and our goal is to apply those very principles to private markets.”

As a financial analyst, I would express it this way: By 2030, development funds with an value exceeding $30 trillion are projected to exist. The online database of Preqin offers comprehensive data on these thousands of funds and their managers. BlackRock, in particular, leads the way in advanced quantitative investment solutions for private markets.

BlackRock is set to incorporate Prequin’s technologies into its Technology Services business segment, contributing approximately 8% to the company’s overall earnings.

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2024-07-02 02:29