It was inevitable. When asset management firms started talking about opening up access to private markets, getting more investors into asset classes like private equity, it was only a matter of time before they would try to introduce passive investing into the mix.
And now BlackRock says that’s its ultimate goal, following a £2.5bn deal to acquire private markets data provider Preqin. According to the fund giant’s chief financial officer, Martin Small, iShares will be able to take some of the data on offer at Preqin to create investable indices and launch ‘things like exchange traded products’.
The main contribution of Preqin to BlackRock’s business will probably be through enhancing its financial technology platform Aladdin, that’s used by many fund selectors and asset managers. It’s a way for BlackRock to benefit from the rise in private markets not just as an investment manager but also as a technology and data business. As more investment groups look to deploy capital in private markets, BlackRock can offer them a unique resource.