July 1 (Reuters) - BlackRock ( BLK ) could start

offering indexes and exchange-traded funds (ETFs) for private

markets, the asset manager said on Monday, after it announced a

deal to buy data provider Preqin for nearly $3.2 billion.

The move underscores BlackRock's ( BLK ) push to become a major

player in alternative assets, which are fast becoming a bigger

component of investors' portfolios.

These assets encompass everything other than stocks and

bonds and are collectively called private market investments -

assets that are not traded on public exchanges or stock markets.

They are more appealing when public markets are volatile,

but analyzing them is tougher due to limited transparency and

inconsistent calculation methodologies.

Indexes offer a standard benchmark for investors to measure

the performance of their portfolios, while ETFs provide access

to a bunch of diversified assets. They are very popular among

passive investors.

Typically, these products have only been available for

investors looking for access to stocks, bonds or commodities,

though some financial firms have begun to expand the pool

recently.

Publicly traded fund Destiny Tech100 ( DXYZ ) allows

shareholders access to some of the hottest privately owned

startups including Elon Musk's SpaceX and Sam Altman's OpenAI.

Bringing indexes and iShares - BlackRock's ( BLK ) ETF arm - into

the private markets will help improve the industry's

transparency and attract more investments, the asset manager

said.

Preqin will be integrated with eFront, an alternative

investment management software BlackRock ( BLK ) bought in 2019. It will

be a part of BlackRock's ( BLK ) technology services unit, which

accounted for 8% of the company's total revenue in the first

quarter.

Although a small business, the technology unit brings in

revenue that is less sensitive to market fluctuations.

"We expect the deal to expand, diversify and accelerate

BlackRock's ( BLK ) technology platform," TD Cowen analysts wrote in a

note.

It could also increase markets perception of BlackRock ( BLK ) as a

technology solutions provider, the brokerage added.

(Reporting by Niket Nishant in Bengaluru; Editing by Saumyadeb

Chakrabarty)