Non-traded alternative investments raised a record $10.5 billion in January 2022, a 175 percent increase from the $3.7 billion raised last January, according to Robert A. Stanger and Co.
Blackstone continued its reign as top alternative investment fundraiser with $4.17 billion raised in January. Its non-traded real estate investment trust, Blackstone Real Estate Income Trust, raised $2.43 billion and its perpetual-life business development company, Blackstone Private Credit Fund, raised $1.7 billion. Apollo Asset Management followed with $1.1 billion raised in its perpetual-life BDC, Apollo Debt Solutions, which recently broke escrow.
With the flurry of sponsors exploring the net asset value REIT and non-traded BDC spaces, Stanger is expecting another record-breaking year for alternative investments.
“Based on new registration activity and pre-registration discussions, we are projecting $120 billion in 2022 fundraising for all alternatives Stanger covers,” said Kevin Gannon, chairman of Stanger. “This includes our fundraising projections of $45 billion for non-traded REITs, and $40 billion for non-traded BDCs.”
Stanger’s survey of top sponsors tracks fundraising of all alternative investments offered via the retail pipeline including non-traded REITs, non-traded BDCs, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zone, and other private placement offerings.
The top ten sponsors for January identified by Stanger are Blackstone Group ($4.17 billion), Apollo Global Management ($1.09 billion), Cliffwater LLC ($698 million), Starwood Capital ($613 million), Blue Owl Capital ($485 million), Bluerock Capital ($279 million), Ares Management ($234 million), SilverBay Capital ($192 million), Pacific Investment Management ($189 million), Inland Real Estate ($185 million).
Blackstone Group leads January non-traded REIT fundraising with $2.43 billion, followed by Starwood Capital with $613 million. Ares Real Estate Group ($138 billion) and FS Investments ($134 million) round out the list of sponsors surpassing the $100 million mark for the month.
In the non-traded perpetual-life BDC space, Blackstone raised $1.74 billion in January, followed by Apollo Global Management with $1.09 billion, and Blue Owl Capital with $392 million.
“The non-traded BDC space is gearing up to take off,” said Randy Sweetman, executive managing director of Stanger. “HPS Investments recently reported that HPS Corporate Lending Fund broke escrow with $511 million in February, and Oaktree Strategic Credit Fund and Owl Rock Technology Income Corp. have gone effective.”
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.