Preqin, a provider of alternative assets data, tools, and insights, has launched Transaction Intelligence, a new solution designed to help investment professionals navigate the complexities of the dynamic private markets landscape. 

Leon Sinclair, EVP, Head of GP Business Unit, at Preqin, said: “We’re really excited to bring Transaction Intelligence to the market. Transaction Intelligence is a one-of-a-kind tool that unlocks an unprecedented era of data-driven decision-making for private market fund managers, professional advisors and investors.”

Transaction Intelligence provides aggregated and anonymized transaction data at the deal and asset-level.

According to Preqin, now it is possible to achieve meaningful insights across front and middle office roles, allowing investment professionals to benchmark portfolios with increased accuracy, pinpoint high-potential sectors, refine valuation models, and meaningfully optimize individual strategies using real, relevant transactions data. 

The launch comes at a time when market participants and regulators are endeavoring to evaluate private markets’ performance and market conditions with increasingly detailed and factual datasets.

The global alternatives market has grown significantly over the past few years. According to Preqin, global alternatives assets under management (AUM) is expected to reach $24.5tn by the end of 2028, compared to an estimated $16.3tn at the end of 2023. 

And yet, in today's volatile global market environment, private markets professionals face significant challenges when evaluating deals and valuations.

Transaction Intelligence addresses these challenges by combining customizable visualization tools with aggregated and anonymized deal performance data and asset operational metrics, providing a comprehensive view of the market to support decision-making, mitigate risks and drive superior returns by enabling investment professionals to: Demonstrate a fund’s strategy and returns against the market at a deeper level; Create benchmarks with custom criteria and accurate, timely transaction data; Ensure valuation models are using relevant peer transactions conducted in the private markets instead of public data comparatives; Identify attractive sectors and strategies based on transacted deals, while underwriting assumptions for Investment Committees; Help investors refine selection criteria and diligence processes; and Understand where losses are occurring within portfolios.

Transaction Intelligence data shows that, since January 2018, across five major industries (Consumer Discretionary, Financial & Insurance Services, Healthcare, Industrials, and IT), Industrials showed strength with only 17% of deals below invested capital ($10bn out of $214bn). Consumer Discretionary had the biggest write-downs at $32bn and 24% loss-making deals ($358bn invested).

“By harnessing granular portfolio company data from over 6,500 funds, this innovative solution sheds light on the historically opaque private markets landscape,” Sinclair said. 

"With a rich taxonomy of over 200 attributes, in real-time users can gain a deeper understanding of performance and value creation drivers, market conditions including multiples paid, loss ratios and adjustments to valuations made by their peers,” he added.

Transaction Intelligence is available to clients through Preqin Pro, or as a standalone product,