ElmTree has a broad geographic footprint, including six office locations and investments in 122 properties across 31 U.S. states. Upon closing, ElmTree will be integrated into Private Financing Solutions, the new platform created through BlackRock’s combination with HPS Investment Partners, a new BlackRock acquisition.
The deal, which is expected to close within the next three months, gives BlackRock a firm that has $7.3 billion in assets under management. ElmTree specializes in “build to suit” industrial real estate facilities.
Fink has touted BlackRock’s shift to private markets as a strategy aiming to give its customers better returns than the “classic 60/40 portfolio” that “may no longer fully represent true diversification,” said Fink, in his letter. ”The future standard portfolio may look more like 50/30/20—stocks, bonds, and private assets like real estate, infrastructure, and private credit.”
Last week, the Securities and Exchange Commission announced that it would prioritize the risks and benefits of “Private Market Investments in Retirement Accounts” as an objective for 2026, in its Report to Congress.
“Structural shifts in the real estate sector are creating new opportunities for private capital,” said Scott Kapnick, Chairman of PFS Executive Office and CEO of HPS. “The combination of a premier triple-net investor with our leading private financing solutions platform will position us to capture these opportunities for our clients.”