From CNBC: 2025-06-10 14:15:00

BlackRock’s CEO Larry Fink highlights the significance of the $3.2 billion acquisition of alternatives asset data provider Preqin in expanding private market profiles, offering revenue diversification. The integration of Preqin’s data into BlackRock platforms enhances visibility into non-public investments, potentially reducing reliance on stock market fluctuations and driving shareholder value.

Preqin’s addition to BlackRock’s portfolio management system Aladdin and investment software eFront provides clients with access to valuation and performance data for private market investments, increasing transparency and encouraging investment. The deal aims to create more accessible private index products and could lead to higher returns for investors, while mitigating risks associated with retail investors entering the private markets.

BlackRock’s acquisition of Preqin has already shown positive results, contributing to a 30% increase in annual contract values and adding $20 million to first-quarter revenue. The deal is expected to attract more clients, deepen relationships, and drive growth across BlackRock’s businesses. Moody’s warns of potential challenges, but Fink remains confident in the innovative potential of the investment industry.

The Preqin acquisition positions BlackRock to retain and attract clients, drive growth in all business sectors, and generate significant synergies. Client relationships fostered by Preqin could lead to increased utilization of BlackRock’s services, driving future growth and value for both clients and shareholders. The deal is expected to create a flywheel effect, improving BlackRock’s overall performance and market position. BlackRock’s acquisition of Preqin expands its presence in the growing private markets sector. The firm recently closed deals for Global Infrastructure Partners and HPS Investment Partners, totaling $24.5 billion. Analysts see private markets as a significant growth opportunity for asset managers, wealth management firms, and banks. Jim Cramer’s Charitable Trust provides trade alerts to subscribers, with specific waiting periods before executing trades.

Read more: BlackRock’s smallest deal of 2024 may end up being its most consequential