BlackRock snaps up UK data provider Preqin for £2.6bn

BlackRock is to take over UK data provider Preqin in a $3.2bn (£2.55bn) deal as the American investment giant expands further into the fast-growing private markets data segment.

The US company announced on Monday that the cash deal is part of its "strategic expansion" into the $8bn addressable market for private markets data, which is expected to grow 12% each year to reach $18bn by 2030.

"There is an even greater need for standardised data, benchmarks, and analytics that enable investors to better incorporate private asset classes into portfolios and provide fund managers with better data and tools to deliver outcomes for clients," BlackRock said in a statement.

Founded in 2002, Preqin provides data and insights that increase transparency and access across the global alternatives market, which is tipped to reach nearly $40trn by the end of the decade.

Preqin, which is estimated to generate $240m in revenue in 2024, has a global coverage of 190,000 funds, 60,000 fund managers and 30,000 private market investors, with more than 200,000 users.

"As clients increasingly evolve their focus from choosing products to constructing portfolios, this shift requires technology, data, and analytics that create a ‘common language’ for investing across both public and private markets. We see data powering the industry across technology, capital formation, investing, and risk management,” said Rob Goldstein, BlackRock's chief operating officer.

Subject to regulatory approvals, the takeover is expected to close before the end of 2024.