Fundraising for non-traded alternative investments totaled $61.8 billion year-to-date through June 2022, a 95 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 $21.3 billion, followed by non-traded business development companies with $15.8 billion, interval funds with $13.7 billion, and Delaware statutory trusts with $5.2 billion.
Blackstone continued to lead alternative investment fundraising with $21.4 billion raised year-to-date. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $12.9 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, raised $8.5 billion.
Other top fundraisers include Blue Owl Capital, which raised $3 billion through two non-traded BDCs and $2.5 billion in private placements. Cliffwater raised $4.2 billion in two credit interval funds, and Starwood Capital’s non-traded NAV REIT raised $3.7 billion. Rounding out the list are Apollo Global Management with $2.9 billion raised, and Bluerock Capital with $2.4 billion.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger is expecting another record-breaking year for alternative assets.
“Based on current lower fundraising levels, we have again reduced our 2022 projections to $35 billion for non-traded REITs (down from our earlier estimate of $40 billion), and $25 billion for non-traded BDCs (down from our earlier estimate of $35 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. “We expect some short-term choppiness in fundraising due to the capital market and interest rate environment.”
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 June 2022, the top alternative investment sponsors identified by Stanger are Blackstone ($21.36 billion), Blue Owl Capital ($5.51 billion), Cliffwater LLC ($4.18 billion), Starwood Capital ($3.66 billion), Apollo Global Management ($2.93 billion), Bluerock Capital ($2.35 billion), HPS Investment Partners ($2.19 billion), Ares Management ($1.95 billion), Nuveen ($1.03 billion), and FS Investments ($1.03 billion).
Year-to-date non-traded REITs have raised $21.33 billion, up from $14.33 billion for the same period of 2021. Blackstone leads 2022 fundraising with $12.87 billion, followed by Starwood Capital with $3.66 billion. Rounding out the top five are FS Investments ($934 million), Ares Real Estate Group ($829 million), and Nuveen ($672 million).
Apollo Realty Income Solutions’ new non-traded REIT was declared effective at the end of June, while PGIM Private Real Estate Fund remains in the pre-effective pipeline and could begin fundraising in 2022.
Year-to-date non-traded perpetual-life business development companies have raised $15.88 billion, up from $6.25 billion during the comparable period of 2021. Blackstone leads fundraising with $8.47 billion, followed by Blue Owl Capital ($3.03 billion), HPS Investment Partners ($2.19 billion), Apollo Global Management ($1.90 billion) and Brookfield/Oaktree ($277 million).
“The non-traded BDC space continues its staggering rate of capital formation, up 154 percent from this time last year,” said Randy Sweetman, executive managing director. “Oaktree Strategic Credit Fund broke escrow with nearly $300 million of proceeds while 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.