Private Wealth Pushes Alternative Investments Past $1 Trillion, Says Stanger
By Staff
Private wealth investors have driven cumulative capital formation in the alternative investment sector past $1 trillion since 2000, according to new data from investment banking firm Robert A. Stanger & Co. Inc.
Stanger’s report tallies capital formation across four major categories as of November 2025:
- Real Estate: $346.3 billion
- Closed-End Funds: $312.7 billion
- Business Development Companies (BDCs): $230.4 billion
- Other Strategies: $112.6 billion
The firm projects that total fundraising for 2025 will surpass $200 billion, a record for the industry and nearly ten times the $20.6 billion raised in 2018.
“Surpassing the trillion-dollar mark is a watershed moment that validates the mainstream adoption of alternatives,” said Kevin T. Gannon, chairman and CEO of Stanger. “What began as a specialized market has evolved into a vital pillar of private wealth portfolios.”
Stanger credits this growth to the widening availability of institutional-grade products to individual investors. Structures such as non-traded REITs, interval funds, and NAV-based BDCs have made private real estate, credit, and equity strategies accessible to accredited investors through independent broker-dealers and registered investment advisers.
Real estate has long anchored the non-traded alts market, but recent inflows have favored closed-end funds and BDCs – particularly those focused on private credit and private equity strategies.
“The trillion-dollar milestone is not the finish line; it’s the starting point,” Gannon added. “Based on current trends, [we expect] alternatives to attract another $1 trillion of capital over the next five years.”
Stanger’s long-running capital formation tracking reflects the growing demand for income-oriented and non-correlated strategies among high-net-worth investors, particularly amid market volatility and evolving portfolio allocation models.
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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