According to the latest report by investment bank Robert A. Stanger & Co., year-to-date 2023 alternative investment fundraising totaled $24.6 billion through May lead by non-traded real estate investment trusts at $7.3 billion, interval funds at $6.1 billion, non-traded business development companies at $5.0 billion, private placements at $2.5 billion and Delaware statutory trusts at $2.1 billion.
While non-traded REITs remain on top for fundraising in 2023 through the end of May, the $428 million of fundraising reported last month was outpaced by non-traded BDCs, which reported $803 million of fundraising for the month.
According to Kevin T. Gannon, chairman of Stanger, “Non-traded BDCs have exceeded fundraising by NAV REITs for the second month in a row. This upswing in capital growth should continue for BDCs in 2023 with several newcomers such as Angelo Gordon, Bain and Fidelity yet to break escrow.”
In the private placement arena, Stanger says Blue Owl posted almost $1.1 billion in fundraising activity for the first five months of 2023 while an infrastructure fund by KKR reported more than $400 million in fundraising in May alone.
“We expect this trend in private placement fundraising to continue for the foreseeable future as the products are simpler to construct and appeal to a fairly wide array of retail investors,” said Randy Sweetman, executive managing director of Stanger.
Year-to-date non-traded REIT’s have raised approximately $7.3 billion. Blackstone Group leads 2023 fundraising with $5.5 billion, followed by FS Investments with $412.3 million. LaSalle Investment Management ($203.1 million), Starwood ($199.8 million) and Ares ($180.8 million) round out the list of top five fundraising sponsors.
Year-to-date non-traded perpetual-life business development companies have raised more than $5.0 billion, led by Blackstone with $1.6 billion. Blue Owl with $1.4 billion, Ares ($847.0 million), Apollo ($503.9 million) and Brookfield ($377.6 million) 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.