BlackRock said it could start developing ETFs for private assets following its $3.2bn acquisition of data provider Preqin.
The group said it sees opportunities to build private asset indices using Preqin data, boosting the industry’s transparency and making it more attractive to investors.
It come as the world’s largest asset manager continues its push into alternative assets, following its $12.5bn purchase of Global Infrastructure Partners earlier this year.
Martin Small, chief financial officer of BlackRock, told investors he believes the private sector indices could help develop a new part of the ETF market.
“In the long range we have a great platform in iShares to be able to take some of this data, use it, and create investable indices through things like exchange traded products," Small said.
ETFs have not been able to directly track private assets as they are not publicly traded on the stock exchange.
There are three private equity ETFs which track companies that invest in private assets in Europe, which combined house over $1.4bn assets under management.
ETF | AUM (m) | TER | Ticker |
|---|---|---|---|
$778 | 0.75% | IPRV | |
$404 | 0.70% | XLPE | |
$285 | 0.40% | FLPE |
