BlackRock acquires ElmTree Funds to expand private asset holdings

BlackRock acquired ElmTree Funds, a commercial real estate firm with $7.3 billion in assets under management. The deal aims to diversify and expand BlackRock’s private asset holdings, following other recent acquisitions totaling over $28 billion.

CEO Larry Fink is leading BlackRock’s shift towards private markets, aiming to offer better returns than traditional stock and bond portfolios. The company plans to include private assets like real estate, infrastructure, and private credit in its investment strategies.

BlackRock is also advocating for the inclusion of private assets in retirement savings accounts, with plans to launch a target-date fund holding private equity, credit, and other investments. The US Securities and Exchange Commission is investigating the use of private equity in retirement accounts.

BlackRock estimates that incorporating private assets into 401(k) plans could increase savings by 15% over 40 years. Analysts suggest that private asset management may generate higher margins compared to BlackRock’s traditional offerings of public stocks and bonds through mutual funds.

Read more at Yahoo Finance: BlackRock pushes deeper into private markets with purchase of ElmTree