Non-Traded REIT Fundraising Rebounds to $597 Million in June, BDCs Raise $1.3 Billion
Non-traded REIT fundraising rebounded 39% to $597 million in June, as compared to the 2023 monthly low of $428 million in May, according to the latest data provided by investment bank Robert A. Stanger & Co. REIT fundraising was buoyed by the issuance of operating partnership units in exchange for DST interests by multiple REITs.
According to Stanger, REIT redemptions remained elevated in the second quarter of 2023 at nearly $4.5 billion for NAV REITs, which represents approximately 291% of fundraising for the quarter.
Non-traded BDC fundraising hit $1.3 billion in June, led by Blackstone Private Credit Fund (BCRED) with $789 million. Year-to-date 2023 alternative investment fundraising totaled $30.4 billion through June lead by interval funds at $8.1 billion, non-traded REITs at $7.8 billion, non-traded BDCs at $6.5 billion, private placements at $3.4 billion and Delaware statutory trusts at $2.5 billion.
According to Stanger Chairman Kevin T. Gannon, “Non-traded BDC’s have exceeded $1 billion in fundraising for the fourth month in row. Angelo Gordon, Bain, Fidelity and Golub are yet to report escrow breaks while several newcomers such as Kennedy Lewis and T. Rowe Price have both joined the pre-effective BDC pipeline.”
The top fundraisers in the alternative investment space year-to-date are Blackstone ($8.0 billion), Blue Owl Capital ($3.4 billion), Cliffwater ($2.9 billion), Ares Management Corporation ($1.7 billion), Apollo Global Management ($1.3 billion), KKR ($754 million), PIMCO (estimated $747 million), FS Investments ($587 million), Variant Investments ($585 million), Brookfield Asset Management ($567 million), LaSalle Investment Management ($536 million) and Bluerock Capital Markets ($516 million) round out the list of sponsors who surpassed $500 million of capital formation at the halfway point of the year.
“In addition to the multiple non-traded BDC newcomers we have also seen EQT Exeter and Inland Private Capital join the pre-effective non-traded REIT pipeline while BentallGreenOak just went effective in July,” said Randy Sweetman, executive managing director of Stanger.
Year-to-date, non-traded REIT’s have raised approximately $7.8 billion. Blackstone leads 2023 fundraising with $5.6 billion, followed by FS Investments with $467.6 million, LaSalle Investment Management ($312.3 million), Ares ($291.9 million) and Apollo ($229.3 million) round out the list of top five fundraising sponsors.
Year-to-date non-traded perpetual-life business development companies have raised more than $6.5 billion, led by Blackstone with $2.4 billion raised. Blue Owl with $1.7 billion, Ares ($847.0 million), Apollo ($674.3 million) and Brookfield ($488.2 million) round out the list of top 5 fundraising sponsors.
As The DI Wire previously reported, Stanger announced this week that non-listed net asset value real estate investment trusts and lifecycle REITs had a combined aggregate net asset value of nearly $122 billion as of the end of Q2 2023.
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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