Fundraising for Business Development Companys Decline in 2023

Fundraising for business development company offerings tracked by investment bank Robert A. Stanger & Co. totaled $183.8 million through the first two months of 2023.

On an annualized basis, assuming no significant increase or decrease in equity flow, opportunity zone offerings tracked by Stanger are projected to raise approximately $1.1 billion in 2023, are on pace to raise nearly two-thirds less than the $3.2 billion raised in 2022.

Top sponsors through the end of February include:

Kennedy Lewis Capital Holdings led sales with a total equity raise of $80.1 million with a market share of 43.6%.

MS Capital Partners’ (Morgan Stanley) totaled $71.8 million and a market share of 39.1%.

Blue Owl Capital raised $24.3 million for a market share of 13.2%.

Barings LLC sales reached $7.6 million at a market share of 4.1%.

As The DI Wire previously reported, Stanger announced that fundraising for Delaware statutory trust offerings, typically used to facilitate securitized 1031 exchanges, totaled just over $1.0 billion through February 2023, while non-traded REIT offerings have raised an aggregate total of $5.1 billion during the same timespan (versus cumulative redemptions of $3.4 billion). The DI Wire also reported that fundraising for securitized opportunity zone fund offerings tracked by investment bank Robert A. Stanger & Co. totaled $76.4 million through the first two months of 2023. This is also a significant decline from 2022’s fundraising.

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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