Sales of non-traded alternative investments reached a staggering $11.5 billion in February, exceeding the previous fundraising record set in January 2022 of $10.5 billion, according to Robert A. Stanger and Co.
Non-traded net asset value real estate investment trusts posted $4.4 billion in sales for the month, while non-traded perpetual-life business development companies topped $3.3 billion.
Blackstone continues its reign as the top alternative investment fundraiser with $4.7 billion in February. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $2.9 billion while its perpetual-life BDC, Blackstone Private Credit Fund, raised $1.7 billion. Other top fundraisers for the month include HPS Investment Partners, which raised $911 million via its recently launched perpetual-life BDC, HPS Corporate Lending Fund; and Starwood Capital’s NAV REIT, Starwood Real Estate Income Trust, raised $753 million.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger is expecting another record-breaking year for non-traded 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.
Year-to-date through February 2022, the top ten alternative investment sponsors identified by Stanger are Blackstone Group ($8.90 billion), Cliffwater LLC ($1.40 billion), Starwood Capital ($1.37 billion), Apollo Global Management ($1.37 billion), Blue Owl Capital ($1.12 million), HPS Investment Partners ($911 million), Bluerock Capital ($634 million), Ares Management ($490 million), Inland Real Estate ($370 million), and FS Investments ($361 million).
Year-to-date through February 2022, non-traded REITs have raised more than $8.12 billion. Blackstone leads 2022 fundraising with $5.37 billion, followed by Starwood with $1.37 billion, and FS Investments with $320.7 million. Ares Management Corp., formerly Black Creek Group, raised $229.3 million with its two non-traded REITs, Ares Industrial REIT and Ares Real Estate Income Trust.
Year-to-date, sales of non-traded perpetual-life BDCs totaled $6.53 billion. Blackstone leads BDC fundraising with $3.52 billion, followed by Apollo Global Management with $1.37 billion, HPS Investment Partners with $911 million, and Blue Owl Capital with $737 million.
“The non-traded BDC space is taking off,” said Randy Sweetman, executive managing director of Stanger. “Oaktree Strategic Credit Fund and Owl Rock Technology Income Corp. became effective in February and are expected to begin reporting sales shortly. In addition, BlackRock, Bain Capital and Nuveen Churchill are teed up in registration.”
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.