Fundraising for non-traded alternative investments totaled $52.1 billion through May 2022, a 108 percent increase over the same period of 2021, according to Robert A. Stanger and Co.
Sales of net asset value real estate investment trusts topped $18.9 billion, followed by non-traded business development companies with $13.8 billion, interval funds with $11.6 billion, and Delaware statutory trusts with $4.5 billion.
Blackstone continued to lead alternative investment fundraising with $19.2 billion raised year-to-date. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $11.6 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, raised $7.6 billion.
Other top fundraisers include Blue Owl Capital, which raised $2.6 billion raised through two non-traded BDCs and $1.2 billion via private placements. Cliffwater raised $3.6 billion raised in two credit interval funds, and Starwood Capital’s non-traded NAV REIT raised $3.3 billion.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger is expecting another record-breaking year for alternative investment fundraising.
“Based on current fundraising levels we have revised our 2022 projections to $40 billion for non-traded REITs (down from $45 billion), and $35 billion for non-traded BDCs (down from $40 billion) but remain confident that our overall fundraising projection for all alternatives Stanger covers will reach $120 billion in 2022,” said Kevin Gannon, chairman of Stanger.
“While we expect some short-term choppiness in fundraising due to the capital market environment, we expect alternative investment strategies and capital formation to continue an upward climb,” Gannon added.
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 May 2022, the top alternative investment sponsors identified by Stanger are Blackstone ($19.21 billion), Blue Owl Capital ($3.80 billion), Cliffwater LLC ($3.59 billion), Starwood Capital ($3.29 billion), Apollo Global Management ($2.67 billion), Bluerock Capital ($1.96 billion), HPS Investment Partners ($1.83 billion), Ares Management ($1.42 billion), FS Investments ($882 million), and Inland Real Estate ($844 million).
Year-to-date, non-traded REITs have raised $18.89 billion, up from $10.73 billion for the same period of 2021. Blackstone leads 2022 fundraising with $11.60 billion, followed by Starwood Capital with $3.29 billion. Rounding out the top five are FS Investments ($801 million), Ares Real Estate Group ($662 million), and Nuveen ($588 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 $13.82 billion, up from $5.05 billion during the same period last year. Blackstone leads fundraising with $7.59 billion raised, followed by Blue Owl Capital ($2.62 billion), HPS Investment Partners ($1.83 billion), and Apollo Global Management ($1.79 billion).
“The non-traded BDC space continues its blistering pace of capital formation, up 174 percent from this time last year,” said Randy Sweetman, executive managing director of Stanger. “Owl Rock Technology Income Corp. broke escrow with $484 million of proceeds while BlackRock Private Credit Fund went effective at the end of the month. Ares Strategic Income Fund, Bain Capital and Nuveen Churchill remain 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.