ETFs
Can BlackRock Bring Indexing and ETFs to Private Markets?
It was inevitable. When asset managers started talking about opening up access to private markets, attracting more investors to asset classes like private equity, it was only a matter of time before they tried to introduce passive investing into their mix.
And now BlackRock says that’s its ultimate goal, following a £2.5bn deal to acquire private markets data provider PreqinAccording to the fund giant’s CFO, Martin Small, iShares will be able to use some of the data offered by Preqin to create investable indices and launch “things like exchange-traded products.”
Preqin’s biggest contribution to BlackRock’s business will likely be enhancing its Aladdin financial technology platform, which is used by many fund selectors and asset managers. It’s a way for BlackRock to benefit from the rise of private markets, not just as an investment manager, but also as a technology and data company. As more investment groups look to deploy capital in private markets, BlackRock can offer them a unique resource.