Non-Traded Alternative Investment Fundraising Reaches $37.4 Billon Year-to-Date
Alternative investment fundraising totaled $37.4 billion year-to-date through July, led by interval funds at $9.6 billion, non-traded business development companies at $9.2 billion, private placements (including Delaware statutory trusts, opportunity zone funds, private BDCs and other private placements) at $9.1 billion and non-traded real estate investment trusts at $8.3 billion, according to the latest data provided by investment bank Robert A. Stanger & Co.
Non-traded BDC fundraising hit $1.3 billion in July, led by Blackstone Private Credit Fund (BCRED) with $774 million raised during the month.
According to Kevin T. Gannon, Stanger’s chairman, “non-traded BDC fundraising from retail investors continued its $1 billion plus per month pace in July. Year-to-date capital growth in these products now exceeds non-traded REITs and we expect this trend to continue with several newcomers such as Fidelity and Golub joining the field.”
The top fundraisers in the non-traded alternative investment space year-to-date as tracked by Stanger are Blackstone ($8.9 billion), Blue Owl Capital ($3.8 billion), Cliffwater ($3.6 billion), Kohlberg Kravis Roberts & Co. ($2.1 billion), Ares Management Corporation ($1.8 billion), Apollo Global Management ($1.6 billion), PIMCO (estimated $870 million), Brookfield Asset Management ($814 million), Variant Investments ($678 million), FS Investments ($653 million), Golub Capital ($650 million), LaSalle Investment Management ($634 million), Bluerock Capital Markets ($561 million) and HPS Investment Partners ($502 million).
“In addition to several non-traded BDC newcomers ramping up their fundraising efforts we continue to see many sponsors experiencing tremendous success raising capital through private placements,” according to Randy Sweetman, executive managing director of Robert A. Stanger & Co., Inc. “Notably, KKR has raised nearly $2 billion year-to-date in their infrastructure and private equity conglomerate offerings combined.”
The non-traded alternative investments tracked by Stanger raised $15.7 billion in the most recent three-month period, lead by non-traded BDCs and interval funds with a strong showing by other private placements including the KKR Infrastructure Conglomerate that raised approximately $808 million over that period.
Year-to-date non-traded REIT’s have raised approximately $8.3 billion. Blackstone leads 2023 fundraising with $5.7 billion, followed by FS Investments with $511.7 million, LaSalle Investment Management ($368.6 million), Ares ($309.6 million) and Apollo ($271.2 million) round out the list of top five fundraising sponsors.
Year-to-date non-traded perpetual-life business development companies have raised more than $9.2 billion, led by Blackstone with $3.2 billion raised. Blue Owl with $2.1 billion, Ares ($847.0 million), Apollo ($824.3 million) and Brookfield ($721.3 million) round out the list of top five fundraising sponsors.
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