Led by BDCs, Annual Alts Equity Raise Up 50% Through June 2025
Alternative Investment fundraising totaled approximately $86.4 billion through June 2025, a year-over-year increase of more than 50% compared with the $57.4 billion raised through June 2024. This is according to the latest analysis by Robert A. Stanger & Company Inc., an investment banking firm and leader in alternative investment industry research.
The surge is led by non-traded business development companies at an estimated $23.2 billion; other private placements, including infrastructure and private equity offerings, at $19.5 billion; interval funds at $18.2 billion; and private business development companies at $7.3 billion. Public non-traded BDC fundraising is up 28.4% compared to this time last year as retail investors continue to be drawn to higher yielding credit focused investments.
Public non-traded real estate investment trusts have raised $2.9 billion year-to-date, down 6.1% as compared to this time last year, while private REITs have raised $4.2 billion and have surged 76.7% as compared to fundraising this same time last year.
“Stanger currently expects alternative investment capital formation to exceed $180 billion in 2025 for publicly registered and private placement products. As we further enhance our analysis of tender offer funds in the closed-end space, we believe fundraising could top $200 billion for the year,” said Kevin T. Gannon, chairman of Stanger.
Stanger’s survey of top sponsors tracks fundraising of all alternative investments offered via the retail
According to Randy Sweetman, executive managing director of Stanger, “The top fundraisers in the alternative investment space year-to-date are Blackstone ($14.4 billion), Cliffwater ($8.6 billion), KKR ($7.3 billion), Blue Owl Capital ($7 billion) and Ares Management Corporation ($6.6 billion).”
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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