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Asset Management: BlackRock’s Troubled History in Private Credit

UNITED STATES, JUL 7 – BlackRock will acquire ElmTree Funds managing $7.3 billion in assets to enhance its presence in private real estate credit and industrial net lease sectors, targeting 30% revenue from private markets by 2030.

  • On Monday, BlackRock revealed plans to acquire ElmTree Funds, a Clayton-based company managing $7.3 billion in commercial property assets.
  • This transaction is part of BlackRock’s ongoing strategy to grow its private markets holdings, having invested more than $28 billion in private acquisitions since early 2024.
  • ElmTree specializes in leasing commercial properties to single-tenant renters and will join BlackRock’s new Private Financing Solutions group alongside HPS Investment Partners.
  • The deal is anticipated to finalize during the third quarter, pending regulatory clearance, involves payment in stock along with performance-based incentives spanning five years, and will see ElmTree’s CEO, James Koman, remain in his leadership role.
  • This acquisition reinforces BlackRock’s drive to increase private market revenue to 30% by 2030 amid rising private credit demand linked to macroeconomic uncertainty.
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The down payment will be made mainly in shares, with the possibility of an additional payment subject to ElmTree's performance over the next five years. However, no additional financial details have been disclosed. At the close of the transaction, ElmTree will join Private Financing Solutions ('PFS'), the new platform created through the combination of BlackRock with HPS Investment Partners, a part of BlackRock. The merger with ElmTree will allo…

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Financial Times broke the news in London, United Kingdom on Monday, July 7, 2025.
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