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 manager HPS Investment Partners, which officially became part of BlackRock last week following the closure of the $12 billion acquisition . “Our specialized bricks-and-mortar expertise will be augmented by HPS’s ability to provide financing and other solutions that fuel the corporations and developers driving the economy forward,” ElmTree founder and CEO James Koman said in a statement. HPS CEO Scott Kapnick added that, “Structural shifts in the real estate sector are creating new opportunities for private capital.” The acquisition is expected to close in the third quarter of 2025 and is subject to regulatory approval. BlackRock shares rose modestly Monday, hitting an intraday record high of almost $1,087 apiece, following the news. The stock was bucking the broader market, which dropped Monday after finishing last week at a record. Big picture This is BlackRock’s latest attempt to broaden its portfolio of private assets, one of the hottest areas of finance. For years, BlackRock has been known …
