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REIT Fundraising Reaches Significant Low in April

Monthly real estate investment trust fundraising reached the lowest level since 2020, according to the latest monthly report by Robert A. Stanger and Co. Inc.

For the month of April, non-traded REITs reported $485 million of fundraising, the lowest level since August 2020 in the beginning of the pandemic.

The report shares that year-to-date 2023 alternative investment fundraising totaled $20.8 billion through April lead by non-traded REITs at $6.8 billion, interval funds at $5.1 billion, non-traded business development companies at $4.0 billion and Delaware statutory trusts at $1.7 billion.

As The DI Wire previously reported, the Stanger net asset value real estate investment trusts total return index declined by 1% in first quarter of 2023.

However, non-traded BDCs reported $1.7 billion of fundraising. The newly effective Ares Strategic Income Fund posted $847 million of capital commitments.

According to Kevin T. Gannon, chairman of Robert A. Stanger & Co. Inc., “Ares Strategic Income Fund’s $847 million in investor commitments is a clear indication that BDCs are on the upswing in capital growth for 2023.”

Year-to-date non-traded REIT’s have raised more than $6.8 billion. Blackstone Group leads 2023 fundraising with $5.3 billion, followed by FS Investments with $320.4 million, LaSalle Investment Management ($192.9 million), Starwood ($167.3 million) and Ares ($158.0 million) round out the list of top five fundraising sponsors.

Year-to-date non-traded perpetual-life business development companies have raised more than $4.0 billion, led by Blackstone with $1.3 billion raised, Blue Owl with $1.1 billion, Ares ($847.0 million), Apollo ($391.6 million), Brookfield ($279.7 million) and HPS ($171.4 million) round out the list of sponsors surpassing the $100 million mark for the year.

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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