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Stanger: Private Placements Are Becoming Major Force in Alts Landscape

By Mari Nicholson

Stanger: Private Placements Are Becoming Major Force in Alts Landscape

Showcasing significant growth in the sector, private placement real estate investment trusts finished the year with an aggregate net asset value of $18.3 billion, accounting for 16.5% of the $111.4 billion total non-traded REIT market. This was according to the latest data from investment banking firm Robert A. Stanger & Company Inc.

Similarly, private placement business development companies ended 2024 with an aggregate NAV of $56.3 billion, representing 37% of the $152.1 billion overall non-traded BDC market.

Stanger’s expanded analysis of private placement BDC fundraising now quantifies more than $56 billion raised across nearly 100 funds since 2014, with private placement BDCs raising $20.1 billion in 2024 alone – a record high and nearly 118% increase year-over-year.

“Private placement BDCs had a record-breaking year in 2024, raising over $20 billion and more than doubling their prior year total,” said Kevin T. Gannon, chairman and chief executive officer of Stanger. “Trailing only interval funds and publicly registered non-traded BDCs in terms of 2024 total sales tracked by Stanger, this underscores the continued dominance of higher yielding credit-focused products in capital formation.”

This was among the topics Gannon discussed during the first general session of ADISA’s 2025 Spring Conference earlier this week, illustrating just how private placements are becoming a major force in the alternative investments landscape.

Big name companies like Blackstone, KKR, Blue Owl, BlackRock, Principal, New Mountain, Goldman Sachs, and Fortress are choosing to do private placements over or at least in addition to public offerings.

“Public offerings take longer, and they’re more expensive, and there’s more regulators sniffing around your deal,” Gannon said on March 31.

Several of the Q4 2024 key developments referred to were:

  • New Mountain Net Lease Trust completed a series of formation transactions on Jan. 2, 2025, launching with a 166-property, 15.5 million square foot net leased industrial portfolio. The portfolio was contributed in exchange for shares valued at approximately $546.2 million, while the REIT also raised $263.0 million in its private offering, primarily earmarked for redeeming legacy shareholders.
  • BlackRock Inc. entered the private placement REIT market, forming the BlackRock Monticello Debt Real Estate Investment Trust in partnership with MONTICELLOAM, LLC.
  • Principal Credit Real Estate Income Trust sold its first $10 million in shares as part of a $150 million capital commitment from Principal Life and an unaffiliated insurance company.

Semi-liquid alternatives work, the head of Stanger further exclaimed, drawing the audience’s attention to redemptions since 2022. Redemptions by investors of non-traded REITs have totaled $43 billion over three years.

“That’s a staggering number and proves the efficacy of the space, making non-traded REITs, non-listed BDCs, and interval funds totally viable,” added Gannon. “There’s enough liquidity there to make it worth our while to take the additional risk and diversify into alternatives using that structure.”

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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