Stanger: Private Non-traded REITs Outraise Publicly Registered Counterparts by 45%
Private non-traded real estate investment trusts outraised their publicly registered non-traded counterparts by over 45% to start the year, attracting over $4.2 billion of investor capital compared to $2.9 billion, respectively, as of June 30, 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.
In Q2 2025, private non-traded REITs grew their aggregate net asset value to $24 billion, a 10.5% quarter-over-quarter increase, further cementing their expanding share of the non-traded REIT market.
Credit continues to dominate fundraising, capturing more than $31 billion of capital in six months, with publicly registered non-traded BDCs attracting $23.1 billion compared to $8.5 billion for private placement BDCs.
Private non-traded BDCs grew their aggregate NAV 8.8% quarter-over-quarter, excluding Blue Owl Technology Finance Corp., which listed its shares on the New York Stock Exchange in June 2025. Prior to its listing, Blue Owl Technology Finance Corp. was the largest private BDC, with an aggregate NAV just under $8 billion as of March 31, 2025.
“Private placements continue to gain traction in the alternative investment market as they benefit from fewer regulatory restrictions, higher concentration limits, and the absence of legacy asset drag,” said Kevin T. Gannon, chairman and chief executive officer of Robert A. Stanger & Company.
“Private placement REITs are on pace for over $8 billion of capital formation for 2025, a 60% year-over-year increase, and private placement BDCs are on pace for $19 billion of capital formation. Private placement REITs are now positioned to outraise their publicly registered counterparts this year,” Gannon added.
Key Developments in Q2 2025
Regulatory tailwinds: Following SEC exemptive relief for multiple share classes in BDCs earlier this year, two private non-traded BDCs – Jefferies Credit Partners BDC Inc. and Vista Credit Strategic Lending Corp. – reclassified and redesignated their share structures.
Strategic consolidation: Goldman Sachs’ $7 billion BDC announced plans to acquire a smaller Goldman-sponsored BDC, underscoring ongoing consolidation in the space.
Institutional partnerships: Starwood Credit Real Estate Income Trust closed a $200 million strategic investment with CalSTRS, one of the largest U.S. pension funds.
New offerings: Blue Owl and CNL both launched perpetual, private non-traded REIT vehicles, expanding investor choice in the 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.
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