Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.Managing cash is an efficient enterprise. Gatekeeping knowledge could be a greater one. On Monday, BlackRock introduced its $3.2bn acquisition of Preqin, a 20-year-old, UK-based firm that tracks tens of hundreds of personal capital corporations around the globe. BlackRock’s enterprise worth is $120bn. The corporate finest recognized for its dominance in passive public market methods can simply afford to swallow Preqin, though it should difficulty new debt to fund the transaction. The worth implies a juicy 13 instances a number of on the goal’s 2024 estimated income. In 2016, Morningstar paid simply seven instances income for one more well-known non-public markets knowledge agency, PitchBook, valuing the latter at $225mn. Non-public markets are immediately a precedence for BlackRock, which paid a hefty $12.5bn this 12 months to purchase the asset supervisor, World Infrastructure Companions. For all the ability BlackRock wields with its $10tn of belongings managed, all it actually desires to be is a S&P or Moody’s.S&P World and Moody’s have enterprise values of $154bn and $82bn respectively. Every trades at about 12 instances ahead income, respectively. BlackRock trades at simply six instances. S&P and Moody’s between their company scores, licensed indices and knowledge in essence have captive subscription charges that appear immune from market swings.BlackRock has furiously tried to place itself as a know-how and analytics firm, significantly hyping up its Aladdin platform. Its hope is that as non-public markets each develop and mature, they might want to standardise. Preqin can then grow to be the winner-take-all benchmark.“Expertise companies” income in 2023 at BlackRock of a significant $1.5bn was nonetheless solely a tenth of administration charges recorded. However on Monday, executives spoke of enterprise mannequin “diversification” and the hopes of driving BlackRock’s a number of greater amid the income synergies they anticipated from Preqin.BlackRock presciently acquired the iShares phase out of Barclays 15 years in the past simply as index fund investing was about to take off. BlackRock has already in contrast the Preqin deal to that fortuitous transaction.Costly, aspirational offers are trickier when the chance value of danger capital is so excessive in an period of elevated rates of interest. Knowledge has proved to be good enterprise. Even so, the Preqin worth goes to be a tricky promote to BlackRock’s public market shareholders.sujeet.indap@ft.com