BlackRock Expands Real Estate Footprint with ElmTree Funds Acquisition

BlackRock has entered a definitive agreement to acquire ElmTree Funds, a net-lease real estate investment firm managing $7.3 billion in assets. The deal, structured primarily as a stock transaction with performance-based earnouts, will integrate ElmTree into BlackRock's Private Financing Solutions platform.

ElmTree's specialization in mission-critical commercial properties complements BlackRock's existing real estate capabilities. The acquisition provides immediate scale in single-tenant build-to-suit assets across 31 U.S. states, while creating synergies with HPS Investment Partners' credit expertise.

The transaction underscores institutional capital's growing appetite for operational real estate platforms. BlackRock gains both an established property portfolio and a team with DEEP corporate tenant relationships—positioning PFS as a comprehensive solution for corporate occupiers and investors alike.