There’s a subtle shift afoot: BlackRock’s recent $7.3B ElmTree acquisition isn’t merely a private-markets debut, it’s another chapter in a story private real estate sponsors have been writing for years. Public markets ebb and flow on short-term sentiment; private real estate thrives on structural demand. As BlackRock CEO Larry Fink noted in April, the “future standard portfolio” could look more like 50% stocks, 30% bonds and 20% private assets, with real estate chief among them.
To see why this matters, let’s explore four key takeaways that balance recognition of institutional scale with the proven strengths of the private-market playbook.
1. BlackRock’s multifamily journey began earlier than you might think
Long before ElmTree, BlackRock quietly signaled its interest in apartments. In 2023 it closed on a $4.2B portfolio of stabilized multifamily communities, an acknowledgment of the sector’s income predictability and tax advantages. ElmTree extends their reach into industrial, but the real lesson is that large institutions often follow successful private-sponsor blueprints rather than invent new ones.
2. TIC structures still lead for retirement capital
Among 401(k)-eligible vehicles, Tenancy-in-Common (TIC) offerings have set the standard. Unlike DSTs, TICs deliver direct fractional title, which preserves pass-through tax benefits and gives LPs a pro-rata economic interest in underlying assets, while governance and decision-making protocols are governed by the TIC agreement rather than public filings. This combination of true asset ownership and streamlined sponsor control has long made TICs attractive for retirement plans. Institutions aiming to engage that capital must respect both the tax structure and the streamlined governance model sponsors perfected.
3. Co-investment sustains alignment
Private sponsors routinely invest 5–10% of deal equity alongside their LPs, creating a shared stake in both upside and risk. While mega-firms bring capital muscle, matching that co-investment commitment is what ensures sponsor and investor incentives stay in sync, whether it’s timing a value-add renovation or determining the right moment to sell.
4. The field is crowded and fee structures vary widely
BlackRock’s move follows similar plays by Blackstone, KKR, Apollo and Brookfield. Each brings its own sector focus and partner networks, but they also differ in how they charge for their services. Institutional platforms often layer on higher base management fees (typically 1%+ of AUM) plus performance fees (20% or more of profits), whereas many private multifamily sponsors offer lower headline fees, closer to 0.75%– 1% management with a more modest promote hurdle. For passive investors, the question isn’t just “institution versus sponsor,” but “which combination of scale, sector expertise and fee alignment best fits my goals?” Comparing offerings like multifamily TICs, DSTs or joint ventures remains essential.
Final Thoughts
BlackRock’s integration of ElmTree into its Private Financing Solutions arm is more than just another M&A headline; it’s a watershed moment affirming that real money, and real returns, live in private markets. Passive investors who have long backed these real-asset strategies now have the added comfort of knowing that even the largest asset managers see the same value.
For more on how leading firms are deploying capital in multifamily, revisit our analysis of Blackstone’s $10 billion bet and what it means for investors. Ultimately, the healthiest private-market ecosystem blends the agility of smaller operators with the resources of global managers, delivering broader access without sacrificing the expertise and alignment that drive long-term performance.
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
