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
-
Trump's First 100 Days: Retirement Savers Learn the Importance of Staying the CourseFrom wild stock market gyrations to emotional trading, here’s how President Trump's first 100 days have impacted retirement savers.
-
Amazon to Display Tariff Charges on Their Product ListingsHow much will tariffs increase Amazon's prices?
-
How Trump's First 100 Days Have Impacted Your PortfolioPresident Trump's first 100 days in office have been busy, with a flurry of executive orders sparking volatility in the stock and bond markets.
-
Is It Still Worth It to Gift Savings Bonds?Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the MarketsWhen markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal DiagnosisThe most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your ClientsWhat financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Serious Medical Diagnosis? Four Financial Steps to TakeA serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
