BlackRock has agreed to acquire ElmTree Funds, a real estate PE firm with $7.3 billion in total assets under management that invests in commercial properties.
The purchase will add to BlackRock’s growing Private Financing Solutions platform, a business it established through its acquisition of the $148 billion credit manager HPS Investment Partners. At the time, the HPS acquisition brought the asset manager’s private credit franchise to around $220 billion in client assets.
This latest combination also brings BlackRock deeper into the real estate debt market, where ElmTree offers loans and other structuring solutions to the commercial net-lease sector, focusing on single-tenant corporate properties.
A commercial net-lease is a lease agreement where the tenant pays both a base rent and a portion of the building’s operating expenses.
Last year, St. Louis-based ElmTree deployed nearly $500 million in transactions, a step down from its $2 billion worth of deals in 2023, according to a statement from the company.
With ElmTree Funds’ LP base of institutional and private investors, the acquisition brings BlackRock a step closer to its goal of raising $400 billion in private capital commitments by 2030.
Terms of the transaction were not disclosed.
Featured image by Tim Grist Photography/Getty Images
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