Alternative assets data, analytics and insights provider Preqin has acquired US and UK-based Colmore, a private markets technology, services and administration business.
Preqin supports more than 110,000 professionals globally in raising capital, sourcing deals and investments and understanding performance.
Colmore's solutions include portfolio monitoring, analytics, fee tracking and validation, and fund administration services for its LP and allocator clients. The business monitors more than 3,000 private market funds and more than 40,000 holdings.
The new alliance between Colmore and Preqin will allow both companies to serve their clients across the entire private market investment lifecycle — from fundraising to due diligence and portfolio monitoring.
Preqin also intends to enhance its benchmarks in partnership with Colmore, giving both companies' clients the ability to better compare their performance.
Market figures
According to Preqin data, the alternatives assets industry is expected to grow rapidly from $12.5tn AUM in 2020 to more than $20tn AUM by the end of 2025.
A growing number of institutional investors are looking to the private markets, demanding cutting edge technology, data and integrated accounting and administration services.
This helps them to better understand the market and streamline their operations, as they face new complexities, from a heightened focus on ESG and diversification into new geographies and asset classes.
Mark O'Hare, founder and CEO of Preqin, commented: "Colmore and Preqin share the same vision — to make our industry more accessible by providing clients with data and insights so they can make investment decisions with confidence. We have big plans for the future as we continue to enhance our solutions."
Preqin and Colmore closed the transaction on 5 August. Colmore will be fully owned by Preqin and run as an independent and standalone business.
Colmore CEO Ben Cook will remain in post and join Preqin's Executive Committee. Both companies plan to expand their headcount and their technology and product offerings.
Houlihan Lokey acted as financial adviser to Colmore, with DC Advisory advising Preqin. Clifford Chance served as the legal adviser to Colmore, with DLA Piper advising Preqin.
Following the acquisition, Sanne has sold its minority shareholding in Colmore, acquired in 2019.