(Bloomberg) — BlackRock Inc . to buy private equity database provider Preqin for £2.55 billion ($3.2 billion) in cash as the world's biggest money manager accelerates its efforts to become a major player in assets alternative.

The acquisition deepens BlackRock's ability to oversee risks and analyze data in fast-growing markets for private assets, and also expands its Aladdin technology systems, the New York-based firm said in a statement on Sunday.

“We see data powering the industry across technology, capital formation, investing and risk management,” Rob Goldstein, BlackRock's chief operating officer, said in the statement.

Private markets are the fastest-growing segment of asset management, with alternative assets expected to reach nearly $40 trillion by the end of the decade, according to BlackRock's statement. This is driving increasing demand from investors for relevant data with the total addressable market expected to reach $18 billion by 2030, up from around $8 billion today.

News Bloomberg reported earlier on Sunday that BlackRock was close to a deal to buy Preq.

For BlackRock Chief Executive Larry Fink, the deal would be the second major acquisition this year to expand into the fast-growing world of private markets investing. signature announced a deal in January to buy Global Infrastructure Partners for about $12.5 billion, a landmark move to expand its offerings beyond primarily stocks and bonds.

BlackRock, with $10.5 trillion in client assets at the end of March, as well won Kreos Capital last year expanded into private debt. In recent years, the firm has built its technology and risk management businesses. In 2019, BlackRock acquired eFront, a software provider that enables investors to value private market assets.

According to the statement, Preqini covers 190,000 funds, 60,000 fund managers and 30,000 private markets investors. It is used by money managers, insurers, pension and wealth managers, among others, and has grown approximately 20% annually in the past three years.

The transaction is expected to close before the end of the year, subject to regulatory and other necessary approvals.

Barclays Plc served as lead financial advisor to BlackRock, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel. Goldman Sachs Group Inc. served as Preqin's sole financial advisor and Macfarlane acted as legal advisor.

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