Alts Fundraising Surpasses $60B; Non-Traded BDCs Raise $4B for Third Consecutive Month
Alternative Investment fundraising totaled approximately $60.6 billion through April 2025, reflecting a $180 billion annual run rate. Fundraising was led by non-traded business development companies at an estimated $16.8 billion, other private placements including infrastructure and private equity offerings at $13.7 billion, and interval funds at $12.2 billion. This is according to the latest analysis by Robert A. Stanger & Company Inc., an investment banking firm and leader in alternative investment industry research.
Despite a month-over-month increase of 27.2%, fundraising in non-traded real estate investment trusts is down 17.7% compared to this time last year overall. On the other hand, non-traded BDC fundraising is up significantly at 45.7% compared to this time last year.
Stanger’s survey of top sponsors tracks fundraising of all alternative investments offered via the retail pipeline including publicly registered non-traded REITs, non-traded BDCs, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zones, and other private placement offerings.
According to Randy Sweetman, executive managing director of Robert A. Stanger & Company: “The top fundraisers in the alternative investment space year-to-date are Blackstone ($10.8 billion), Cliffwater ($6 billion), Kohlberg Kravis Roberts & Co. ($5.1 billion), Ares Management Corporation ($4.7 billion) and Blue Owl Capital ($4.6 billion).
Non-traded NAV REITs reported first quarter investor redemption results that revealed an increase to 3.4% of average aggregate NAV as compared to 2.3% the prior quarter.
“The slightly elevated redemption level is well within the expected 5% cap imposed by most programs except Starwood, which imposed a 1% cap on quarterly redemptions,” said Kevin T. Gannon, chairman of Stanger.
NAV REIT redemptions for the first quarter of 2025 totaled $2.8 billion as compared to $1.9 billion in Q4 2024. Despite the increase, NAV REIT redemptions are down from the $4.1 billion redeemed the same time last year in Q1 2024. Non-traded BDC first quarter investor redemptions remained stable at 1.4% of average aggregate NAV with little to no change from the prior quarter and the same time last year.
During the first quarter of 2025, the overall aggregate NAV of the non-traded BDC space soared past $100 billion as retail investors continue to shift their portfolio allocations to BDCs and other credit-oriented products with higher yields.
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
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