Alternative assets data, analytics and insights firm Preqin has acquired Colmore, a private markets technology, services and administration business, in a bid to support clients and increase transparency and understanding of private markets.

Colmore’s key solutions include portfolio monitoring, analytics, fee tracking and validation, and fund administration services for its limited partnership (LP) and allocator clients, it was announced.

Colmore monitors more than 3,000 private market funds and more than 40,000 holdings.

The acquisition will allow both companies to serve their clients across the entire private market investment lifecycle – from fundraising to due diligence and portfolio monitoring, a release stated.

Preqin also plans to enhance its benchmarks in partnership with Colmore, giving both firms’ clients the ability to compare their performance against the industry’s most accurate, timely and transparent benchmarks, it added.

Mark O’Hare, founder and chief executive officer at Preqin, said: “Colmore and Preqin both share the same vision – to make our industry more accessible by providing our clients with data and insights so they can make investment decisions with confidence.”

Commenting on the growing trend of private market investments, O’Hare added: “The alternatives industry is growing bigger every year as yield-hungry investors turn to alternative assets in search of strong return as well as portfolio diversification.”

He also noted that megatrends such as ESG, Asia’s growing prominence in the global economy, and digital transformation “are driving the industry to continuously evolve and change for the better. We want to be part of this evolution”.

Growing industry

According to Preqin data, the alternative assets industry is expected to grow rapidly from $12.5trn (€10.7trn) in 2020 to more than $20trn by the end of 2025.

A growing number of institutional investors are looking to private markets, demanding cutting edge technology, data and integrated accounting and administration services, Preqin said.

“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,” it added.

Ben Cook, CEO at Colmore, added: “Clients will get the best of our administration, monitoring and fee validation services, enhanced by Preqin’s global private markets data. Clients will be able to see their invested fund information, together with wider industry data, all in one place.”

The acquisition was successfully completed on 5 August 2021. Colmore will be fully owned by Preqin and run as an independent and standalone business.

Cook will remain Colmore’s CEO and join Preqin’s executive committee.

Global law firm DLA Piper represented Preqin in its acquisition of Colmore, while Barings supported Preqin via a senior secured facility to finance the acquisition. Financial terms were not disclosed.

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