BlackRock Clamps Down On Data Integration

This week we take a look at BlackRock’s acquisition of Preqin and how it reinforces the shift in the business landscape to tech and data driven support systems and structures within companies.

Fun Fact

With BlackRock’s roughly $10 Trillion in AUM(Assets Under Management), they would be able to buy the International Space Station, the most expensive object ever created, a ‘measly’ 67 times.(Wall Street Oasis)

Current Affairs

BlackRock To Acquire Preqin For $3.2 Billion

BlackRock recently announced it’s move to acquire Preqin for $3.2 billion in an all cash deal. This deal underpins current business landscape trends of leveraging data, AI and other number crunching systems. BlackRock’s asset manager stated that the deal is a significant expansion into the “fast-growing private markets data sector”.

Context: What is Preqin

Preqin is a leading provider of data, analytics, and insights for the alternative assets industry. It offers comprehensive information on private equity, hedge funds, real estate, infrastructure, private debt, and natural resources. Preqin's data services are used by asset managers, investors, and service providers to make informed decisions, track market trends, and identify investment opportunities. The platform provides a wide range of resources, including fund performance metrics, fundraising data, investor profiles, and detailed analyses of the alternative assets landscape.

How Does BlackRock Aim To Leverage Preqin

BlackRock aims for the acquisition of Preqin to aid its commitment to private markets as part of its investment and technology strategy. Preqin provides a plethora of high quality data insights and points on alternative investments which BlackRock aims to integrate with its Aladdin platform. The Aladdin platform is an advanced risk management and investment platform used by financial professionals and already integrates data, analytics, and technology to provide comprehensive tools for portfolio management, trading, operations, and compliance.

The data acquired from Preqin, therefore allows BlackRock’s Aladdin platform to pioneer and dominate the private markets with informed assessments based on seamlessly integrated high-quality data.

This helps combat one of the general concerns of private markets, which is information asymmetry. Information asymmetry refers to the concept that private companies are not required to disclose as much information as publicly traded companies, due to the absence of stringent regulatory and listing standards that apply to public markets.

Future Proofing

It’s evident that BlackRock’s acquisition of Preqin shows aspects of prospecting for future-proof business strategies in the respective industry, i.e. the seamless integration of technology, data and AI.

Resources

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