BlackRock acquires ElmTree Funds to expand private markets portfolio

BlackRock acquires ElmTree Funds, expanding further into private markets. ElmTree manages $7.3 billion in assets and will join BlackRock’s Private Financing Solutions. The move is part of BlackRock’s strategy to diversify revenue streams and grow its private assets portfolio. The acquisition is expected to close in the third quarter of 2025.

BlackRock has been actively pursuing deals to broaden its private assets portfolio. With the recent acquisition of ElmTree Funds, BlackRock now has over $28 billion in private-markets acquisitions since the start of 2024. Management aims for private markets and technology businesses to account for at least 30% of revenue by 2030.

The acquisition of ElmTree Funds isn’t a significant financial impact yet, but it reflects BlackRock’s strategic focus on expanding into private markets. The move aligns with management’s goal of diversifying revenue streams and reducing reliance on its ETF business. Other recent acquisitions like Preqin have already shown positive results for BlackRock. Investors can expect updates on BlackRock’s performance during the upcoming second-quarter earnings report on July 15.

Read more at CNBC: BlackRock keeps its foot on the private-markets pedal with another acquisition