The world’s largest investment management firm just got a little larger. BlackRock (BLK) has completed the acquisition of real estate private equity firm ElmTree Funds, which has approximately $7.3 billion in assets under management (AUM), managed on behalf of institutional and private investors.
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First announced in July, the deal has now been finalized, with management declaring that it further augments BLK’s ability to provide “diverse investment solutions” for its clients as the firm seeks to capture immense opportunities created by “structural shifts” in the capital markets.
With traders returning to their desks after the Labor Day holiday, BLK stock is set to open the trading session ~0.66% lower, currently quoted at $1,119.75 per share in pre-market following Friday’s 0.3% tick down.
According to the asset management firm, acquiring ElmTree further elevates BlackRock’s Private Financing Solutions (PFS) platform as one of the industry’s premier providers of comprehensive solutions for companies and investors.
Given ElmTree’s expertise in the commercial net-lease sector, ElmTree is expected to accelerate PFS’s efforts to scale up its product range for clients specifically looking for “long-dated contractual income” for their portfolios, while supporting the critical infrastructure and growth plans of companies across the U.S., the company said.
BLK’s Flurry of Diversifying Acquisitions
The acquisition is just the second in a flurry of moves by BLK to enhance its position in the private financing niche, following the completion of its acquisition of HPS Investment Partners for $12 billion in July. At the time, BLK said its acquisition would create “an integrated private credit franchise” that could ultimately expand BlackRock’s alternative asset footprint. HPS’s portfolio spans energy, transport, digital infrastructure, and water management, giving BlackRock greater agility and breadth—not just added scale.
In other market moves, BLK acquired Global Infrastructure Partners for $12.5 billion earlier this year and private market data provider Preqin for $3.2 billion in 2024.
Collectively, these deals amount to nearly $30 billion in strategic investments across private credit, infrastructure, and data—underscoring BlackRock’s push to diversify beyond public markets and expand its alternatives platform. The firm’s goal is ambitious: lift private markets revenues from roughly 15% of total revenues today to 30% by 2030, driving annual revenues from about $20 billion to more than $35 billion.
Is BlackRock a Good Buy?
On Wall Street, BLK stock carries a Strong Buy consensus rating based on 12 Buy, one Hold, and zero Sell ratings over the past three months. BLK’s average stock price target of $1,176 implies approximately 4% upside potential over the next twelve months.
Who is BlackRock Owned By?
According to TipRanks data, BlackRock’s ownership is broadly diversified across institutions, insiders, and the public. Institutional investors hold about 56.6% of shares, insiders account for 0.8%, and the remaining 42.6% is owned by public companies and individual investors.
A complete list of BlackRock’s top shareholders shows the top three shareholders as being Vanguard, iShares, and SPDR, each owning 8.18%, 4.34% and 3.44%, respectively.