Non-traded real estate investment trusts raised approximately $2.3 billion in March, marking the first month above $2 billion since the pandemic began and just shy of the highest raise on record of nearly $2.5 billion in February 2020, according to investment bank Robert A. Stanger & Company. Previous record-breaking months were January 2020 with $2.4 billion, and August 2013 with nearly $2.2 billion.
After a strong finish in March, first quarter 2021 sales reached close to $5.1 billion, up from $4.2 billion in the previous quarter.
“Non-traded REIT fundraising has bounced back to pre-pandemic levels,” said Kevin Gannon, Stanger’s chairman and chief executive officer. “First quarter fundraising of $5 billion supports our previous projection of a record-breaking $20 billion year.”
Blackstone Group leads first quarter 2021 fundraising with $3.6 billion, followed by Starwood Capital with $856 million. Black Creek Group has raised $222 million in sales, followed by Hines Interest ($115 million) and Nuveen LLC ($91 million).
In the non-traded business development company space, sales reached close to $3.2 billion in the first quarter of 2021, after raising just $362.3 million in all of 2020.
Blackstone Private Credit Fund, the industry’s first perpetual-life BDC, led the charge with $998 million raised in March, bringing its first quarter fundraising to almost $3.1 billion. Owl Rock Capital raised a total $43 million in March, including $17 million in their traditional non-traded BDC and $26 billion in their newly launched non-traded perpetual-life BDC, Owl Rock Core Income Corporation. Owl Rock Capital raised a total of $82 million in the first quarter of 2021.
“The launch of these new perpetual-life products will shine a spotlight on the business development company sector in 2021,” said Stanger.
Stanger’s survey of top sponsors of alternative investments revealed sales of more than $13.2 billion in first quarter via the retail pipeline, roughly half of the full-year 2020 total of $26.9 billion.
Alternative investments included in the survey are publicly registered non-traded REITs, non-traded BDCs, interval funds, non-traded preferred stock of traded REITs, as well as Delaware statutory trusts, opportunity zone funds, and other private placement offerings.
The top alternative investment sponsors identified by Stanger are Blackstone Group ($6.7 billion), Starwood Capital ($856 million), Greenbacker Capital ($455 million), Bluerock Capital ($318 million), Black Creek Group ($274 million), Griffin Capital ($227 million), Inland Real Estate ($188 million), CION Investments ($178 million), Variant Investments ($173 million), and Owl Rock Capital ($166 million).
Founded in 1978, Robert A. Stanger & Co. Inc. is a national investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, REITs, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations and consolidations.