Alts 2024 Fundraising Totals $109.4 Billion, Led by Non-Traded BDCs

According to investment banking firm Robert A. Stanger & Company Inc., alternative investment fundraising totaled approximately $109.4 billion through November led by non-traded business development companies at an estimated $32.3 billion, interval funds at $26.7 billion and other private placements, including infrastructure and private equity offerings, at $20 billion.

Non-traded BDC fundraising is up nearly 76% compared to this time last year while non-traded real estate investment trust fundraising is down 45%, respectively. The industry continues to transform as investors shift their portfolio allocations to private placement offerings, infrastructure, private equity, and higher yielding credit-focused investments.

“Fundraising in business development companies, interval funds and private placements continue to dominate in the space as investors have shifted their investments away from non-traded REITs in 2024,” said Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc.

“In addition to the five non-traded BDCs and 29 interval funds that went effective this year there remains nearly 40 interval funds in the registration pipeline. Given the strong fundraising reported year-to-date along with these recent product launches, Stanger is reaffirming its 2024 projection of $120 billion of capital formation in alternative investments by retail investors,” added Gannon.

The top fundraisers in the alternative investment space year-to-date are Blackstone, Cliffwater, Blue Owl Capital, Ares Management Corporation, and Kohlberg Kravis Roberts & Co.

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