Fundraising for non-traded alternative investments totaled $43 billion year-to-date through April 2022, a 131 percent increase over the same period of 2021.
Sales of net asset value real estate investment trusts topped $15.6 billion during the period, followed by non-traded business development companies with $11.6 billion, interval funds with $9.5 billion, and Delaware statutory trusts with $3.5 billion.
Blackstone continued to lead alternative investment fundraising with $16.4 billion raised year-to-date. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $9.7 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, raised $6.7 billion.
Other top fundraisers include Cliffwater with $2.9 billion raised through its two credit interval funds, and Starwood Capital’s non-traded NAV REIT, which raised $2.8 billion.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger expects another record-breaking year for alternative assets.
“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 publicly registered non-traded REITs, non-traded BDCs, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zone funds, and other private placement offerings.
Through April 2022, the top alternative investment sponsors identified by Stanger are Blackstone ($16.43 billion), Cliffwater LLC ($2.93 billion), Starwood Capital ($2.78 billion), Blue Owl Capital ($2.70 million), Apollo Global Management ($2.44 billion), Bluerock Capital ($1.49 billion), HPS Investment Partners ($1.43 billion), Ares Management ($1.21 billion), FS Investments ($705 million), and Inland Real Estate ($700 million).
Year-to-date, non-traded REITs have raised $15.63 billion, up from $7.74 billion for the same period of 2021. Blackstone leads 2022 REIT fundraising with $9.73 billion, followed by Starwood Capital with $2.78 billion. Rounding out the top five are FS Investments ($635 million), Ares Real Estate Group ($535 million), and Nuveen ($480 million). Apollo Realty Income Solutions and PGIM Private Real Estate Fund remain in the pre- effective pipeline and could begin fundraising in 2022.
Year-to-date non-traded perpetual-life BDCs raised a total of $11.55 billion, up from $4.15 billion during the same period of 2021. Blackstone leads 2022 BDC fundraising with $6.69 billion in sales, followed by Blue Owl Capital ($1.72 billion), Apollo Global Management ($1.71 billion), and HPS Investment Partners ($1.43 billion).
“The non-traded BDC space is the fastest growing sector of the alternative investment space,” according to Randy Sweetman, executive managing director. “Oaktree Strategic Credit Fund and Owl Rock Technology Income Corp. became effective in February and are expected to begin reporting sales shortly. Ares Strategic Income Fund registered this month, joining BlackRock, Bain Capital and Nuveen Churchill in the pre-effective pipeline.”
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.