Non-Traded Alts Raised $51 Billion Through Third Quarter, Interval Funds Lead the Way with Nearly $14 Billion
Non-traded alternative investment fundraising totaled $50.9 billion year-to-date through September, led by interval funds at $13.7 billion, private placements at $13.5 billion, non-traded business development companies at nearly $13.2 billion and non-traded real estate investment trusts at nearly $9.0 billion, according to the latest data provided by investment bank Robert A. Stanger & Co.
Public non-traded business development companies fundraising hit $1.8 billion in September, again led by Blackstone Private Credit Fund (“BCRED”) with $842 million raised this month.
“Retail investors are revising their allocation strategy to interval funds, private placements and non-traded BDCs and away from non-traded REITs which have dominated the space over the last seven years,” said Kevin T. Gannon, chairman of Robert A. Stanger & Co. Inc. “Accordingly, we are seeing more and more firms launching private placements (including infrastructure and private equity) such as KKR, Ares and most recently the JPMorgan Private Markets Fund.”
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 business development companies, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zones and other private placement offerings.
The top fundraisers in the alternative investment space year to date are Blackstone ($10.6 billion), Blue Owl Capital ($5.2 billion), Cliffwater ($5.2 billion), Kohlberg Kravis Roberts & Co. ($3.2 billion), Ares Management Corporation ($2.7 billion), Apollo Global Management ($2.3 billion), PIMCO (estimated $1.2 billion), Brookfield Asset Management (estimated $1.1 billion), Goldman Sachs ($1.1 billion), HPS Investment Partners ($916 million through August), Variant Investments ($854 million), FS Investments ($812 million), LaSalle Investment Management ($711 million), Bluerock Capital Markets ($693 million) and Carlyle ($685 million) round out the list of top 15 sponsors in capital formation though August.
“This month we saw Crescent and T. Rowe Price/Oak Hill go effective in the non-traded business development company space as public and private BDCs continue to attract new entrants to the market,” said Randy Sweetman, executive managing director of Robert A. Stanger & Co. Inc.
The alternative investments tracked by Stanger raised $17.9 billion in the most recent three-month period led by non-traded BDCs and interval funds with a strong showing by other private placements, including Goldman Sachs Private Credit Corporation that has raised approximately $1.1 billion year-to-date through September.
Year-to-date non-traded REIT’s have raised approximately $9.0 billion. Blackstone leads 2023 fundraising with $6.0 billion (inclusive of a $4.5 billion UC investment), followed by FS Investments with $629.3 million, LaSalle Investment Management ($395.7 million), Ares ($341.8 million) and Apollo ($315.1 million) round out the list of top five fundraising sponsors.
Year-to-date non-traded perpetual-life business development companies have raised approximately $13.2 billion, led by Blackstone with $4.6 billion raised. Blue Owl with $2.9 billion, Apollo ($1.4 billion), Ares ($1.2 billion) and Brookfield ($997 million through August) round out the list of top five fundraising sponsors.
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.
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