Private Placement REITs, BDCs Surpass $85 Billion in Combined Aggregate NAV
In the first quarter of 2025, private placement real estate investment trusts saw their aggregate net asset value rise to $21.8 billion, an 11% quarter-over-quarter increase, while private placement business development companies experienced a 13% quarter-over-quarter increase, elevating their aggregate NAV to $63.5 billion.
Fundraising activity in these private placement vehicles remained strong to start the year, with REITs raising $2.1 billion and BDCs raising $4.4 billion in Q1 2025. 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 REITs and BDCs are steadily capturing a larger and larger share of the alternatives market, with private REITs now accounting for nearly 20% of NT-REITs aggregate NAV and private BDCs representing over 37% of NT-BDCs” said Kevin T. Gannon, chairman and chief executive officer of Stanger.
Among the top performers in Q1, mortgage NAV REITs led the way, with Principal Credit Real Estate Income Trust and Starwood Credit Real Estate Income Trust ranking first and second, achieving total returns of 2.6% and 2.5%, respectively. Over the one-year period, Invesco Commercial Real Estate Finance Trust, another mortgage REIT, topped the list with a 10.6% total return.
The latter, as reported by AltsWire earlier this month, closed its inaugural $1.2 billion managed commercial real estate collateralized loan obligation. It is secured by a portfolio consisting of approximately 55% multifamily and 45% industrial loans.
Notably in Q1, Blue Owl Technology Finance Corp. completed its acquisition of Blue Owl Technology Finance Corp. II while Carlyle Secured Lending III was acquired by the NASDAQ-listed Carlyle Secured Lending.
“We anticipate that private placements will remain a key focus for new fund launches, particularly following the SEC’s March 2025 grant of multi-class exemptive relief to private BDCs, which enhances their structural flexibility and appeal to a broader investor base,” added Gannon.
Regarding other Stanger data, In the first three months of 2025, its NAV REIT Total Return Index achieved a three-month return of 1.2%, slightly trailing the 1.6% average of public indices. However, year-to-date through April 25, public indices, of course, faced headwinds, averaging a -2.1% return due to recent market volatility. Over the past 12 months, the Stanger NAV REIT – or net asset value real estate investment trust – Index posted a 1.3% return, compared to a robust 10% average for public indices.
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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