Colmore Acquisition: Key Details, Impact, and What Comes Next

Preqin's acquisition of Colmore marks a significant development in the private market investment sector. By integrating Colmore's advanced technology and services, Preqin aims to enhance its offerings, providing clients with comprehensive data and insights throughout the investment lifecycle. This strategic move underscores the growing demand for sophisticated tools and transparency in alternative assets.

What Is Colmore?

Founded in 2017, Colmore provides technology and services tailored for private asset limited partners (LPs) and general partners (GPs). Their core offerings include real-time portfolio monitoring through INSIGHT, fee tracking with FAIR, and integrated fund services. Colmore's unique selling points are their deep expertise in private markets, real-time data management, and proprietary technology platforms like HELIOS and STRIDE, which enhance data accuracy and analysis, offering comprehensive solutions that streamline investment processes.

Who Acquired Colmore?

Preqin operates in the financial services industry, specializing in alternative assets. The company provides essential data, solutions, and insights to help clients make informed decisions. Key offerings include comprehensive databases, analytical tools, and research reports tailored for asset management. Preqin holds a significant market position, recognized for its extensive and reliable data services, which play a crucial role in the decision-making processes of industry professionals.

When Was Colmore Acquired?

Preqin completed the acquisition of Colmore on August 5, 2021. This strategic move came at a time when the alternative assets industry was experiencing significant growth, driven by increasing demand for advanced technology and comprehensive data services. The acquisition aimed to enhance Preqin's capabilities in providing transparency and integrated services throughout the private market investment lifecycle, aligning with industry trends towards greater data accuracy and real-time portfolio monitoring.

Why Was Colmore Acquired?

• Market Expansion: The acquisition allows Preqin to serve clients across the entire private market investment lifecycle, enhancing its market-leading benchmarks and solidifying its position as a leader in the private markets. The alternative assets industry is expected to grow from $12.5 trillion AUM in 2020 to more than $20 trillion AUM by the end of 2025.
• Technology Integration: Colmore’s technology solutions, including portfolio monitoring, analytics, fee tracking, and validation, will be integrated with Preqin’s global private markets data. This integration will provide clients with comprehensive data and insights, enabling them to see their invested fund information alongside wider industry data in one place.
• Competitive Advantage: The combined capabilities of Preqin and Colmore will offer clients enhanced services, including the ability to compare their performance against the industry’s most accurate, timely, and transparent benchmarks. This partnership aims to make the private markets more accessible and help clients make investment decisions with confidence. The rapid expansion of headcount and continued growth in technology and product offerings further strengthen their competitive advantage.

Acquisition Terms

• Acquisition Price: The terms of the acquisition, including the price, were not disclosed.
• Payment Method: The payment method for the acquisition is not mentioned in the available documents.
• Key Conditions or Agreements:
  • Colmore will be fully owned by Preqin and run as an independent and standalone business.
  • Ben Cook will remain the CEO of Colmore and join Preqin’s Executive Committee.
  • Both companies plan to rapidly expand their headcount and continue to grow their technology and product offerings.
  • Houlihan Lokey acted as the exclusive financial advisor to Colmore, with DC Advisory advising Preqin.
  • Clifford Chance served as the legal advisor to Colmore, with DLA Piper advising Preqin.

Impact on Colmore

The acquisition of Colmore by Preqin has led to significant changes in operations and management. Colmore will continue to operate as an independent and standalone business under Preqin's ownership, with Ben Cook remaining as CEO and joining Preqin’s Executive Committee. Both companies plan to rapidly expand their headcount, reflecting a commitment to growth and innovation. This strategic alignment aims to leverage Colmore's expertise in private markets technology and services, enhancing Preqin's ability to provide comprehensive data and insights throughout the private market investment lifecycle.

In terms of product offerings and services, the acquisition has enabled Preqin to integrate Colmore's advanced portfolio monitoring, analytics, fee tracking, and fund administration services with its own global private markets data. This integration offers clients a unified platform for real-time data management and analysis, improving transparency and decision-making capabilities. While specific employee and customer reactions are not detailed, the overall sentiment appears positive, with expectations of enhanced services and expanded capabilities. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.