US EditionAsset 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.
14 Articles
14 Articles
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…
BlackRock keeps its foot on the private-markets pedal with another acquisition - Finnoexpert
BlackRock’s new acquisition pushes the asset manager one step deeper into private markets. The news The asset management giant on Monday announced an agreement to buy ElmTree Funds, a real estate investment firm that manages roughly $7.3 billion in assets. ElmTree, which leases commercial properties to single-tenant renters, will be integrated into BlackRock’s new group called Private Financing Solutions. The PFS unit is home to private credit m…
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