BlackRock Completes Acquisition of $7.3B ElmTree Real Estate Firm
BlackRock Inc. (NYSE:BLK) – the world’s largest asset manager with $12.53 trillion in assets – has completed its acquisition of ElmTree Funds, a private equity net-lease real estate investment firm with $7.3 billion in total assets under management as of March 31, 2025.
James Koman will continue to lead the ElmTree investment strategies as part of PFS.
As previously reported by AltsWire, upfront consideration to ElmTree was paid primarily in stock, with the potential for additional consideration subject to ElmTree performance over the next five years. Additional financial details were not disclosed.
BlackRock said the addition of ElmTree – which is based in St. Louis and manages a portfolio of more than 250 single-tenant commercial properties across the nation – will further its expansion into private markets, elevating its Private Financing Solutions, or PFS, platform as “one of the premier providers of comprehensive solutions for companies and investors alike.”
With ElmTree’s capabilities in the commercial net-lease sector, the merger is meant to accelerate PFS’s efforts to scale its range of investment solutions for clients looking for long-dated contractual income for their portfolios, while supporting the critical infrastructure and growth plans of companies across the United States.
BlackRock’s PFS division was first established following its acquisition of HPS Investment Partners in July.
“We are thrilled to welcome our new colleagues from ElmTree Funds to PFS. Combining ElmTree’s expertise in the commercial net-lease sector with our leading capabilities and scale further augments our ability to provide diverse investment solutions for our clients as we continue to capture the immense opportunities created by structural shifts in the capital markets,” said Scott Kapnick, chairman of the PFS executive office and founding partner and chief executive officer of HPS Investment Partners.
“We are excited to deliver on the potential of this combined platform, with Jim and his team onboard for this next step in our evolution,” added Kapnick.
During CEO Larry Fink’s tenure, BlackRock has spent just under $30 billion this year purchasing firms that enhance its enhance its presence in private markets, such as HPS, and also lobal Infrastructure Partners and Preqin.
Fink has highlighted the importance of private markets to BlackRock’s long-term strategy and, this spring in an annual letter, championed a 50/30/20 portfolio, with 50% stocks, 30% bonds, and 20% private assets as the a better alternative to the traditional 60/40 portfolio.
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