BLK Deepens Private Markets Footprint, Completes ElmTree Buyout

BlackRock BLK has completed the acquisition of ElmTree Funds, LLC, a St. Louis–based real estate investment firm specializing in net-lease assets. As of March 31, 2025, ElmTree managed $7.3 billion in assets.

The deal is part of BLK’s long-term goal to raise $400 billion for private markets by 2030. The acquisition expands BlackRock’s private markets platform, giving clients broader access to alternative investments beyond traditional stocks and bonds.

The ElmTree buyout builds on the company’s acquisition of HPS Investment Partners (“HPS”), reinforcing its push into private credit and real estate assets. The addition of ElmTree strengthens BlackRock’s Private Financing Solutions (PFS) platform, reinforcing its position as a leading provider for companies and investors. As a commercial net-lease leader, ElmTree will help PFS expand its investment offerings, delivering long-term income opportunities for clients while supporting corporate growth across the United States.

Scott Kapnick, Chairman of PFS Executive Office and Founding Partner and CEO of HPS Investment Partners, said, “Combining ElmTree’s expertise in the commercial net-lease sector with our leading capabilities and scale further augments our ability to provide diverse investment solutions for our clients as we continue to capture the immense opportunities created by structural shifts in the capital markets.”

Over the past year, BlackRock has invested more than $28 billion to strengthen its position in the high-growth private markets space. In addition to acquiring HPS in July 2025, it purchased Preqin, a leading private markets data provider, in March, and Global Infrastructure Partners, the largest independent infrastructure manager, in October 2024.

BlackRock’s Efforts to Expand Alternative Assets Offerings

In his April shareholder letter, BlackRock CEO Larry Fink emphasized the company’s pivot toward private markets, suggesting the traditional 60/40 portfolio could evolve into a 50/30/20 mix of stocks, bonds and private assets to deliver stronger returns.

Reflecting this shift, in June, BLK unveiled plans to launch a target-date fund, offered through Great Gray Trust, that will incorporate private equity, private credit and other alternative investments. The company has also collaborated with Partners Group to combine a varied pool of private assets into a single portfolio of alternatives for retail clients. 

Further, BlackRock is integrating private equity and credit investments into pre-built portfolios to meet the rising demand among individual investors. It designed model portfolios that combine publicly traded stocks and bonds alongside more sophisticated private equity and credit funds, with plans to add other alternatives over time. The company claims the offering to be the first of its kind in the asset management industry.

BlackRock's competitors in the alternative asset management business, like Apollo Global Management APO and Blackstone BX, continue to make substantial strides in private markets, scaling multi-strategy platforms, securing large third-party mandates and expanding into asset-backed and infrastructure credit as the market broadens globally. 

Both APO and BX are leaning into evergreen and private wealth channels, while originating larger, bespoke financings that were once dominated by banks.

BLK’s Price Performance & Zacks Rank

Shares of BlackRock have risen 8.7% this year against the industry’s fall of 1.6%.
 

BLK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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