BlackRock, Inc. has finalized its acquisition of ElmTree Funds, a move aimed at strengthening BlackRock’s Private Financing Solutions (PFS) platform. The company announced that integrating ElmTree will help PFS offer a broader set of investment solutions for clients seeking long-term contractual income and support infrastructure development across the United States.
ElmTree is known for its focus on the commercial net-lease sector and has built a portfolio of investments in industrial properties throughout primary and secondary U.S. markets since 2011. With this acquisition, James Koman will continue to lead ElmTree’s investment strategies as part of the PFS team.
Scott Kapnick, Chairman of PFS Executive Office and Founding Partner and CEO of HPS Investment Partners, commented on the deal: “We are thrilled to welcome our new colleagues from ElmTree Funds to PFS. 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. We are excited to deliver on the potential of this combined platform, with Jim and his team onboard for this next step in our evolution.”
Legal counsel for BlackRock and HPS included Skadden, Arps, Slate, Meagher & Flom LLP; Fried, Frank, Harris, Shriver & Jacobson LLP; and Sidley Austin LLP. Goldman Sachs & Co. LLC served as financial advisor to HPS. Berkshire Global Advisors was financial advisor to ElmTree Funds, with Kirkland & Ellis LLP providing legal counsel.
BlackRock states that it aims to make investing easier and more affordable while serving millions globally as a fiduciary and provider of financial technology (www.blackrock.com/corporate). ElmTree Funds manages capital for institutional and private investors with an emphasis on net-leased commercial real estate (https://elmtreefunds.com/).
The company also noted various risks related to forward-looking statements about future performance or expectations following recent acquisitions.