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lackRock, the world's largest asset manager, has expanded its presence in private markets with another acquisition. The company will buy ElmTree Funds, a commercial real estate firm based in St. Louis, for an undisclosed price. The deal is expected to close within three months pending regulatory approvals and gives BlackRock control of $7.3 billion in assets under management. ElmTree specializes in "build-to-suit" industrial real estate facilities and leases over 250 properties across the US.

    This acquisition marks another step by BlackRock's CEO Larry Fink to diversify and remake his New York-based financial institution. In the past year, BlackRock has spent over $28 billion on related acquisitions, including Global Infrastructure Partners and HPS Investment Partners. The company will integrate ElmTree into its private finance solutions unit formed with the HPS purchase.

    BlackRock's push into private markets is part of a broader strategy to offer customers better returns than traditional stock and bond portfolios. CEO Larry Fink has suggested that the future standard portfolio may include 50% stocks, 30% bonds, and 20% private assets like real estate and infrastructure. The company is also advocating for the inclusion of private assets in retirement savings accounts.

    BlackRock estimates that offering private assets to 401(k) holders could deliver 15% more money in their accounts over 40 years. Analysts see private asset management as generating higher margins than BlackRock's traditional business of offering public stocks and bonds through low-cost mutual funds.