Fundraising for non-traded alternative investments totaled $32.9 billion in the first quarter of 2022, according to Robert A. Stanger and Co.
Fundraising for net asset value real estate investment trusts topped $12.2 billion during the quarter, following by non-traded business development companies with $8.9 billion, interval funds with $7.1 billion, and Delaware statutory trusts with $2.9 billion.
Blackstone continued to lead alternative investment fundraising during the quarter with $12.9 billion raised. Its non-traded REIT, Blackstone Real Estate Income Trust, raised $7.8 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, raised $5.2 billion.
Other top fundraisers during the quarter include Cliffwater with $2.2 billion raised through its two credit interval funds, while Starwood Capital’s non-traded NAV REIT raised $2 billion.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger expects another record-breaking year for 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.
For the first quarter, the top 2022 alternative investment sponsors identified by Stanger are Blackstone ($12.94 billion), Cliffwater LLC ($2.21 billion), Starwood Capital ($2.05 billion), Blue Owl Capital ($2.01 million), Apollo Global Management ($1.56 billion), Bluerock Capital ($1.10 billion), Ares Management ($1.06 billion), HPS Investment Partners ($911 million), Inland Real Estate ($582 million), and Griffin Capital ($579 million).
Year-to-date, non-traded REITs have raised $12.17 billion, which was led by Blackstone with $7.77 billion and followed by Starwood Capital with $2.05 billion. FS Investments ($512 million) and Ares Real Estate Group ($421 billion) round out the list of sponsors surpassing $400 million for the year. Apollo Realty Income Solutions recently registered a $5 billion NAV REIT that is expected to commence fundraising in 2022.
Year-to-date, non-traded perpetual-life BDCs have raised $8.86 billion, led by Blackstone with $5.17 billion raised. Apollo Global Management ($1.56 billion), Blue Owl Capital ($1.22 billion) and HPS Investment Partners ($911 million) round out 2022 fundraising.
“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. Blackstone has just filed an additional $24 billion in shares, bringing the size of its offering to $36.5 billion, and BlackRock, Bain Capital and Nuveen Churchill are all 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.