By Sherry Qin


BlackRock agreed to acquire U.K. data provider Preqin in a $3.22 billion deal, part of efforts by the world's largest asset manager to bolster data capabilities as it expands into private-market investments.

The New York-based company said late Sunday that it had agreed to acquire privately held Preqin for 2.55 billion pounds ($3.22 billion) in cash. It expects the deal to close before the end of the year pending regulatory approvals.

BlackRock intends to continue to offer Preqin as a standalone service while also using it with the asset manager's Aladdin proprietary software to "create a preeminent private markets technology and data provider."

"Private markets are the fastest growing segment of asset management," BlackRock said in a statement, adding that alternative assets are expected to reach nearly $40 trillion by the end of the decade.

Preqin, founded in 2003, focuses on the global alternatives market, offering data on private capital, hedge funds, infrastructure, real estate and natural resources asset classes, as well as publishing rankings of top-performing private equity and venture capital fund managers, among others. The company employs around 500 researchers globally, the majority of whom are based in the Asia-Pacific region.

BlackRock said Preqin is forecast to generate about $240 million in revenue in 2024, after having posted growth of about 20% a year over the past three years.

Barclays acted as lead financial adviser to BlackRock in the deal, while Goldman Sachs International was financial adviser to Preqin.

BlackRock has been pushing to expand its private-market operations, an area that is faster growing and potentially more lucrative than its core business of selling low-cost passive investment products such as exchange-traded funds.

In January, it agreed to buy private-equity firm Global Infrastructure Partners for roughly $12.5 billion in cash and stock, while last week it inked a partnership with Chicago-based GeoWealth to offer private-equity and debt funds in customized portfolios for financial advisers across the U.S.

BlackRock's assets under management climbed to $10.47 trillion in the first quarter, up 15% from a year earlier, boosted by $57 billion of net inflows to its investment products.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

07-01-24 0033ET