Alts Fundraising Tops $165 Billion YTD; Non-Traded BDCs Set Record Pace
Alternative Investment fundraising totaled approximately $165.7 billion through October, reflecting a $200 billion annual run rate. Fundraising was led by non-traded business development companies at an estimated $37.9 billion; other private placements, including infrastructure and private equity offerings, at $34.5 billion; and interval funds at $33.2 billion. This was according to the latest analysis from investment banking firm Robert A. Stanger & Company Inc.
Despite a month-over-month increase of 18.7%, due in part to 721 UPREIT transactions, fundraising in non-traded real estate investment trusts was down 2.7% compared with this time last year. On the other hand, non-traded BDCs continue their record setting year, with inflows up 29.4% versus the same period in 2024.
“Non-traded BDCs through October have already surpassed the 2024 full year fundraising of $35 billion. Since Stanger began tracking these products in 2008, when the first non-traded BDCs became available in the retail channel, nearly $155 billion of flows have been captured,” said Kevin T. Gannon, chairman of Stanger.
“We expect 2025 capital formation in publicly registered non-traded BDCs to surpass $40 billion, a record for the space,” added Gannon.
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 zone, and other private placement offerings.
“The top fundraisers in the alternative investment space year-to-date are Blackstone ($23.4 billion), Cliffwater ($14.1 billion), Kohlberg Kravis Roberts & Co. ($13.9 billion), Ares Management Corporation ($13.0 billion) and Blue Owl Capital ($12.1 billion),” said Randy Sweetman, executive managing director of Stanger.
Non-traded net asset value REITs have reported third quarter investor redemption results that revealed a slight decrease to 2.3% of average aggregate NAV as compared to 2.5% the prior quarter. Gannon emphasized that the redemption levels are well within the expected 5% quarterly cap imposed by most programs.
“After seven consecutive quarters of redemptions rates exceeding 4% of average aggregate NAV beginning in the fourth quarter of 2022, redemption requests and unsatisfied redemption queues have vastly subsided in 2025,” said Gannon. “With redemption pressures easing and underlying portfolio performance steadying, the non-traded REIT market is showing signs of stabilization.”
Non-traded BDC third quarter investor redemptions reported a decrease to 1.8% of average aggregate NAV as compared to 2.4% the prior quarter. During the third quarter of 2025, the overall aggregate NAV of the non-traded BDC space surpassed $125 billion as retail investors continued 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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