BlackRock Acquires Preqin for $3.2 Billion

BlackRock Inc. has announced its acquisition of private capital database provider Preqin for $3.2 billion in cash, marking a significant move into alternative assets and private markets. This acquisition, expected to close by year-end 2024, will be funded with $3 billion of incremental debt and $200 million in cash. Analysts, including Goldman Sachs' Alexander Blostein, foresee meaningful revenue synergies and increased distribution through BlackRock’s network. CEO Larry Fink emphasized that the acquisition will enable BlackRock to apply principles of indexing to private markets, aiming to democratize access to alternative assets. Preqin is projected to generate $240 million in revenues in 2024, contributing to the fast-growing private markets sector, expected to reach $40 trillion by the end of the decade. The acquisition will not impact BlackRock's planned dividends and share repurchases.