Vinesh Jha’s Post

BlackRock acquires Preqin for £2.55bn - what does it mean for Private Markets Data & Analytics? In this Asymmetrix newsletter we dive into one of the most talked about M&A transactions of the week, and one of the biggest Data & Analytics M&A transactions so far this year. We consider: - How fair is the valuation? - Why is BlackRock buying Preqin and getting into Data & Analytics? - Why is Private Markets Data & Analytics taking off? - Who are the losing bidders in the auction? - What other Private Markets Data & Analytics assets might they consider acquiring? - Will founder Mark O'Hare and the other Preqin shareholders help to fund a new wave of Data & Analytics businesses? Please read, share and subscribe. Thanks!

I posted a while back about deal multiples in financial SaaS, especially private markets data platforms (happy to accept any accusations of self-interest here......). Our analysis suggested that there are big premia being paid for platforms with proprietary data sets - https://lnkd.in/eMkrYh_2 I returned to this article yesterday, following the news that BlackRock had Preqin for over 13x revenue (yes, revenue, not EBITDA). I have to admit that, whilst I knew Preqin was a great business, the extent of its growth bypassed me a little. From £13m revenue in 2013 to £134m in 2022 and, largely, self-funded. Very impressive. The multiple looks chunky but is far from unusual in this arena - last year, Burgiss, another private markets data platform, was acquired for nearly 12x revenue (on our numbers). Colmore was acquired by Preqin itself for nearly 10x in 2021. Bureau Van Dyke was sold to Moody's for 11.6x. Recurring revenues + big moats = chunky multiples. If you want to look under the bonnet of MarktoMarket to analyse valuation in this or any other sector, let me know. We think we have the most detailed database of deal multiples and it's all verifiable. #valuation #businessvaluation #mergersandacquisitions #corporatefinance

Enhancing Multi-Asset Portfolio Management with Advanced Data Solutions For firms focused on multi-asset portfolios, including private assets, it is crucial to address several key areas to ensure optimal performance and efficiency: Ensure Data Quality: Accurate and reliable data is the foundation for effective portfolio management. Putting right validations at the fore-front of the workflow and consolidating such data where necessary from multiple data sources will be important - say ESG attributes. Provide Access to Data: Utilize APIs and BI tools to ensure end users have seamless access to the necessary data, enhancing decision-making and operational efficiency. Consolidate Asset Views: Offer a comprehensive view of both traditional and alternative assets for better insights and reporting. The term to use for this is 'whole-of-fund' view. This integration is essential for understanding exposures, risk, performance along with related portfolio data and to manage decades of siloed information. Streamline Back-Office Functions: A consolidated view aids in standardizing operations and reporting processes for clients and regulators, making back-office functions more efficient. Adopt Advanced Technology: Leveraging 'modern' technology can simplify integrations and significantly reduce operational expenses over time. As buy-side firms navigate the evolving landscape, focusing on these areas will not only enhance their investment capabilities but also drive growth and efficiency. Thanks Brenda Lyons for sharing the below article on the growing demand for consolidated data views #buyside #datamanagement #marketrisk

The Private Equity Info team hosts demos every day to showcase the power of our M&A research database. Time and time again, customers ask important questions about how our tools and data can help accelerate their M&A deal flow. For this article, we curated the most common questions we hear, to provide a clearer sense of what our product has to offer. To read more from this article click here

This deal has investment managers rethinking the value proposition of continuing to send their performance and other data to Preqin. Preqin has always been known and celebrated for bringing GPs and LPs together in an unconflicted manner. While their data was never fully independent because it was sourced from investment managers, at least they never competed with them. The questions will move beyond their belief in "Chinese walls" and to whether the continued use of their data enables BlackRock to develop derivative products and services that compete with them. This is a great test for the #data and #informationservices industry. https://lnkd.in/eAP2rQU6 #hedgefunds #privateequity #venturecapital #privatecredit #infrastructuefunds #realestatefunds #securitizedassets

Lawyers, consultants, fund administrators, and tech providers all feature in the latest edition of Preqin News' weekly round-up of people moves at firms providing services to the alternative assets industry. Read more: https://okt.to/6vpFsH #alternativeinvestment #serviceproviders #PeopleMoves #privatemarketinsights

LSEG, BlackRock and S&P among potential bidders for data provider Preqin. LSEG (London Stock Exchange Group), BlackRock and S&P Global are among potential bidders for data provider Preqin, Reuters reported. The owners of the UK data firm that focuses on the private equity industry are considering options, including a full sale of the business, and are being advised by Goldman Sachs. #MergersAcquisitionsDivestitures #AlternativeInvestments #UnitedKingdom

A look at PE closed-end funds from a different angle: - Listed private equity funds are a small niche sector with the combined market capitalization of London-listed closed-end funds totaling around £11.5bn (excluding 3i) – less than 1% of private equity AUM globally; - London-listed private equity funds one-third owned by non-institutional investors; - Listed private equity has outperformed unlisted private equity since December 2022. The full report Strategy in Focus: An LP’s Guide to Investing in Listed Private Equity Funds for Insights+ subscribers is on here: https://lnkd.in/eTyN47T4

The M&A train in research and data keeps speeding down the tracks - and it’s down to the teams at financial institutions who budget, negotiate and manage these relationships to figure out what to make of it all. I hope their firms understand how challenging and valuable a role that is! #marketdata #investmentresearch https://on.ft.com/4cDoV52

Lawyers, consultants, fund administrators, and tech providers all feature in the latest edition of Preqin News' weekly round-up of people moves at firms providing services to the alternative assets industry. Read more: https://okt.to/Hs8Mo5 #alternativeinvestments #privatemarketinsights #privatemarkets