BlackRock Inc. (NYSE: BLK) announced it is acquiring ElmTree Funds, a St. Louis-based net-lease real estate investment firm with $7.3 billion in total assets under management.
The financial details of the acquisition were not disclosed. Founded in 2011, ElmTree has six office locations and investments in 122 properties across 31 states.
Upon closing, ElmTree will be integrated into Private Financing Solutions, a new platform created through BlackRock’s combination with HPS Investment Partners, a part of BlackRock. ElmTree’s founder and CEO James Koman will continue to lead the ElmTree strategies.
“The net lease market is estimated at $1 trillion, and our continued belief in the industrial build-to-suit model is rooted in the mission-critical nature of this asset class,” said Koman. “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. By joining HPS and BlackRock, we are better positioned to meet market demand and serve our partners by growing alongside them for the long term.”
