Seller Details:
ElmTree Funds, LLC (ElmTree), headquartered in St. Louis, Missouri, is a real estate private equity firm that manages capital on behalf of institutional and private investors. ElmTree’s investment philosophy focuses on making strategic investments in the commercial real estate net-lease and build-to-suit sectors with a focus on industrial properties. Since its founding in 2011, ElmTree has acquired, developed, or financed an extensive portfolio of commercial real estate. ElmTree targets investments in primary and secondary markets across the U.S. that are net-leased to investment grade tenants on a long-term basis.
Buyer Details:
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.
Transaction Summary:
Upon closing, ElmTree will be integrated into Private Financing Solutions (“PFS”), the new platform created through BlackRock’s combination with HPS Investment Partners, a part of BlackRock (“HPS”).
The combination with ElmTree will position HPS 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. Together, the platform will be positioned to deliver attractive risk-adjusted returns with favorable structures, offering clients the long-term, stable income investment solutions they seek for their portfolios, while meeting the operational needs of investment-grade companies that drive the economy.