Fundraising for non-traded alternative investments totaled $69.3 billion year-to-date through July, a 95 percent increase when compared to the same period of 2021, according to Robert A. Stanger and Co.
Sales of net asset value real estate investment trusts topped $23.6 billion, followed by non-traded business development companies with $17.1 billion, interval funds with $15.5 billion, and Delaware statutory trusts with $6 billion.
Blackstone continued to lead alternative investment fundraising with $23.3 billion raised year-to-date. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $14.2 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, raised $9 billion.
Other top fundraisers include Blue Owl Capital, which raised $3.4 billion through non-traded BDCs and $3.2 billion in private placements.
Cliffwater raised $4.6 billion through its interval funds, and Starwood Capital’s non-traded NAV REIT raised $3.9 billion. Apollo Global Management’s BDC raised $2 billion while its interval funds raised $1.1 billion, and Bluerock Capital raised $2.7 billion, primarily via its interval funds.
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 fundraising levels we maintain our 2022 projections at $35 billion for non-traded REITs and $25 billion for non-traded BDCs and 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 July 2022, the top alternative investment sponsors identified by Stanger are Blackstone ($23.3 billion), Blue Owl Capital ($6.6 billion), Cliffwater ($4.6 billion), Starwood Capital ($3.9 billion), Apollo Global Management ($3.1 billion), Bluerock Capital ($2.7 billion), HPS Investment Partners ($2.4 billion), Ares Management ($2.3 billion), FS Investments ($1.1 billion), and Nuveen ($1.1 billion).
Year-to-date, non-traded REIT’s have raised $23.6 billion, up from $17.7 billion for the same period of 2021. Blackstone leads 2022 fundraising with $14.2 billion, followed by Starwood Capital with $3.9 billion. Rounding out the top five fundraisers are FS Investments ($1 billion), Ares Real Estate Group ($982 million), and Nuveen ($738 million).
Year-to-date, non-traded perpetual-life BDCs have raised $17.1 billion, up from $7.3 billion during the same period of 2021. Blackstone leads fundraising with $9 billion, followed by Blue Owl Capital ($3.4 billion), HPS Investment Partners ($2.4 billion), Apollo Global Management ($2.0 billion) and Brookfield/Oaktree ($320 million).
“The non-traded BDC space continues its staggering rate of capital formation, up 136 percent from this time last year,” according to Randy Sweetman, executive managing director. “Nuveen Churchill Private Capital Income Fund became effective in July while Ares Strategic Income Fund and Bain Capital were joined by T. Rowe Price OHA 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.