Private Placement Alts Surge in Q3 With Record YTD $20.4B Fundraising
Private placement vehicles continued to gain momentum in the third quarter of 2025 as sponsors and investors sought evergreen, institutionally managed exposure to private real estate and private credit.
Net asset value among private placement real estate investment trusts and business development companies reached $93.2 billion, reflecting a 10% quarter-over-quarter increase and 43% growth year-over-year.
This is according to the latest analysis by Robert A. Stanger & Company Inc., an investment banking firm and leader in alternative investment industry research.
Private placement BDCs raised more than $14.5 billion year-to-date as of Sept. 30, 2025, with aggregate NAV climbing over 11% quarter-over-quarter.
Private placement REITs raised $5.9 billion over the same period, outperforming their publicly registered counterparts by nearly 36% in year-to-date fundraising and pushing their aggregate NAV up 8% quarter-over-quarter. This has been driven, in part, by the continued upward trend of their distribution yields so far this year.
“The private placement model has quickly become a new mainstay for non-traded private credit and real estate strategies,” said Kevin T. Gannon, chairman and chief executive officer of Stanger.
Among performance leaders, Stanger identified Sculptor Diversified Real Estate Income Trust as having the highest total return at the end of Q3 2025 with 4.9%, while Ares Real Estate Income Trust posted the highest one-year total return at 10.7%.
“Blue Owl’s October announcement of an 11-asset, $3+ billion digital infrastructure seed transaction is a game-changer for the private space and underscores the scale and confidence in today’s private markets by sponsors and investors alike. It not only highlights the year’s trend toward big-ticket alternative deals but also sponsors’ bullish outlook for alternative investments,” Gannon added.
Gannon refers to Blue Owl Digital Infrastructure Trust’s planned acquisition of 11 digital infrastructure real estate assets from Blue Owl Digital Infrastructure Fund I (BODI I) and its affiliated funds. The acquisition expected to close in December 2025 and valued at $3.29 billion in gross enterprise value, is a significant move to expand the REIT’s presence in the high-growth digital infrastructure sector.
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.
Click here to visit the AltsWire directory page.
