BlackRock (BLK), the world's largest asset manager, announced late Sunday that it will buy U.K.-based private markets data provider Preqin for approximately $3.2 billion in cash.
BlackRock's Aladdin platform provides technology solutions to more than 1,000 clients. The combination of Preqin with eFront, Aladdin's private markets solution will bring "together the data, research, and investment process for fund managers and investors across fundraising, deal sourcing, portfolio management, accounting, and performance," BlackRock said.
"Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers," Sudhir Nair, global head of Aladdin, said in a statement. "This presents a substantial opportunity for Aladdin to bridge the transparency gap between public and private markets through data and analytics."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Private markets are the fastest growing segment of asset management, and private markets data is expected to see its total addressable market grow at a rate of 12% per year and reach $18 billion by 2030, BlackRock said.
"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," said BlackRock Chief Operating Officer Rob Goldstein in a statement. "We see data powering the industry across technology, capital formation, investing, and risk management."
The transaction is subject to regulatory approvals and other customary closing conditions, BlackRock said. If all goes as planned, the deal is expected to close before the end of 2024.
Is BlackRock stock a buy, sell or hold?
Wall Street is bullish on the financial stock. According to S&P Global Market Intelligence, the average analyst target price for BLK stock is $913.53, representing implied upside of about 17% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the bullish outfits on the blue chip stock with a Buy rating and $908 price target, and it sees the acquisition of Preqin as a positive for BlackRock.
"The combination of Preqin with Aladdin and eFront will allow BLK to integrate private markets investment workflows with proprietary data that touches all aspects of private markets including fundraising, deal sourcing, portfolio monitoring, accounting, and performance," Jefferies analyst Daniel Fannon said in a July 1 note. "Preqin will also expand BLK's client base adding 4,000+ relationships across general partners, limited partners, and service providers."
Related Content
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for YouPresident Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure RetirementYou need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
