Mark O’Hare, the founder of Preqin, has joined the ranks of billionaires following BlackRock’s acquisition of his data company. The deal, valued at $3.2 billion, not only cements O’Hare’s financial legacy but also brings substantial wealth to Preqin’s employees, some of whom will now become millionaires. This acquisition marks a significant milestone in the financial data and analytics industry, showcasing the growing importance of alternative investment data.
The Acquisition Deal
On June 30, BlackRock, a global leader in investment management, announced its acquisition of Preqin for $3.2 billion. This acquisition is set to significantly impact the financial data landscape, particularly in the realm of alternative investments where Preqin specializes. Founded in 2002 by Mark O’Hare, Preqin has grown to become a major player in providing data and analytics services to private market investors, fund managers, and funds worldwide.
Mark O’Hare and his wife will walk away with approximately $2 billion after taxes, thanks to their nearly 80% ownership stake in Preqin through Valhalla Venture. This substantial payout has propelled O’Hare past BlackRock’s CEO Larry Fink, whose net worth stands at $1.7 billion.
However, O’Hare is not the only beneficiary of this lucrative deal. Preqin’s management and its 1,500 employees will share approximately $650 million from the acquisition. This distribution is poised to make several Preqin employees millionaires, marking a significant financial milestone for many within the company.
Preqin’s Growth and Industry Impact
Preqin has established itself as a key provider of financial data and analytics, focusing primarily on alternative investments. With a client base that includes 30,000 private market investors, 60,000 fund managers, and 190,000 funds, Preqin’s influence in the financial sector is substantial. The company anticipates generating about $240 million in revenue in 2024, highlighting its robust growth trajectory.
The acquisition by BlackRock is expected to accelerate Preqin’s efforts in delivering enhanced private markets data and analytics. As part of the acquisition, Mark O’Hare will join BlackRock as a vice chair, further strengthening the collaboration between the two companies. In a press release, O’Hare expressed his excitement about the acquisition, stating, “BlackRock is known for excellence in both investment management and financial technology, and together we can accelerate our efforts to deliver better private markets data and analytics to all of our clients at scale.”
This is not O’Hare’s first major business success. In 1998, he sold his equity owner database, Citywatch, to Reuters, marking his initial foray into significant business transactions. The sale of Citywatch laid the foundation for O’Hare’s future ventures, ultimately leading to the creation and success of Preqin.
The substantial wealth distribution to Preqin employees is a testament to the company’s commitment to its workforce. By sharing $650 million among its 1,500 employees, Preqin is setting a precedent for employee compensation in the tech and financial sectors. This move not only rewards the employees for their contributions but also fosters a culture of loyalty and motivation within the company.
With the acquisition, Preqin is poised to leverage BlackRock’s vast resources and expertise to further its mission of providing comprehensive data and analytics for alternative investments. The integration with BlackRock’s investment management and financial technology prowess is expected to enhance Preqin’s service offerings and expand its market reach.
O’Hare’s new role as a vice chair at BlackRock will allow him to continue influencing the growth and strategic direction of Preqin. His experience and vision will be instrumental in navigating the evolving landscape of financial data and technology.
The acquisition of Preqin by BlackRock marks a significant moment in the financial data and analytics industry. It has transformed Mark O’Hare into a billionaire and brought substantial financial gains to Preqin’s employees. This deal not only highlights the value of alternative investment data but also underscores the importance of recognizing and rewarding the contributions of employees. As Preqin embarks on this new chapter with BlackRock, it is well-positioned to continue its growth and impact in the financial sector.
