Shares in BlackRock, Inc. (NYSE: BLK) moved up first thing, on the announcement it has entered into a definitive agreement to acquire ElmTree Funds, a net-lease real estate investment firm with $7.3 billion in total assets under management as of March 31, 2025.
This morning’s news release said upfront consideration will be paid primarily in stock, with the potential for additional consideration subject to ElmTree performance over the next five years. Additional financial details were not disclosed.
The hookup with ElmTree will position PFS to scale its real estate offering, while expanding into new markets as an owner-operator.
As part of PFS, ElmTree will help accelerate the long-term growth of the platform, combining its deep expertise and strong relationships in commercial real estate with HPS’s market expertise and existing capabilities as a leading credit investor.
Founded in 2011, ElmTree is a recognized leader in the commercial net-lease sector, with a focus on single tenant, build-to-suit real estate assets that are mission critical to corporate tenants’ core operations and growth.
“ElmTree is a best-in-class owner-operator,” the release continues, “with significant corporate and developer relationships and a broad geographic footprint, including six office locations and investments in 122 properties across 31 U.S. states.”
BLK shares hiked $2.73 to begin Monday at $1,084.88
