- The private equity giant bought Bridge Investment Group, a multifamily and industrial investor with $50B in AUM, through an all-stock transaction at a 34% premium.
- The $7.3B net-lease specialist will join BlackRock’s private financing platform, marking another step in the firm’s expansion into alternative investments.
- Together, the two deals reflect strong demand for scale in real estate. Executives from both Bridge and ElmTree will remain in place under their new ownership.
According to Bisnow, Apollo Global Management and BlackRock both closed acquisitions this week that expand their real estate holdings. Apollo finalized its $1.5B purchase of Bridge Investment Group. BlackRock completed its deal for ElmTree Funds, adding a combined $57B in assets under management.
Apollo’s Expansion
Apollo bought Bridge through an all-stock transaction priced at $11.50 per share—a 34% premium over Bridge’s February stock price. The deal doubled Apollo’s real estate AUM to $110B.
Bridge, based in Salt Lake City, manages $50B in assets, including $22B in fee-paying assets. It will keep operating independently, with leadership and 300 employees joining Apollo. Bob Morse, Bridge’s executive chairman, will become a partner at Apollo and lead its real estate equity business.
BlackRock’s Play in Net-Lease
BlackRock’s acquisition of ElmTree Funds adds $7.3B in assets to its private financing platform. The firm launched this platform earlier this year after acquiring HPS Investment Partners.
ElmTree, founded in 2011, develops build-to-suit industrial and net-lease properties across 31 states. CEO James Koman will stay in charge. The deal also includes five years of performance-based incentives for ElmTree’s leadership.
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Why It Matters
These acquisitions highlight a larger trend: consolidation among real estate investment managers. Big firms want to expand into specialized niches while gaining scale. Investors see value in platforms that combine deep capital resources with targeted expertise, especially in a market facing dislocation.
What’s Next
Apollo and BlackRock are likely to keep growing their real estate arms. The sector should see more consolidation as managers compete to capture institutional capital and meet demand for resilient real estate strategies.
