Fundraising for non-traded alternative investments totaled $77.1 billion year-to-date through August 2022, a 56% increase over the same period of 2021, according to Robert A. Stanger and Co.
Sales of net asset value real estate investment trusts reached $26.0 billion, followed by non-traded business development companies with $18.7 billion, interval funds with $18.0 billion, and Delaware statutory trusts with $6.8 billion.
Blackstone continued to lead alternative investment fundraising with $25.0 billion raised year-to-date. Its non-traded REIT, Blackstone Real Estate Income Trust, has raised $15.4 billion, while its perpetual-life BDC, Blackstone Private Credit Fund, has raised $9.6 billion.
Other top fundraisers include Blue Owl Capital, which has raised $3.7 billion via two non-traded BDCs and $3.2 billion in private placements. Cliffwater raised $5.2 billion in two credit interval funds, and Starwood Capital’s non-traded NAV REIT raised $4.2 billion. Rounding out the list are Apollo Global Management with $3.4 billion raised, and Bluerock Capital with $3.1 billion.
With the flurry of sponsors exploring the NAV REIT and non-traded BDC spaces, Stanger is expecting another record-breaking year for alternative assets.
“Based on current fundraising levels we maintain our 2022 projections at $35 billion for non-traded REITs and $25 billion for non-traded BDCs and remain confident that our overall fundraising projection for all alternatives Stanger covers will reach $120 billion in 2022,” said Kevin T. Gannon, chairman of Stanger. “We expect some short-term choppiness in fundraising due to the capital market and interest rate environment.”
Through August 2022, the top alternative investment sponsors identified by Stanger are Blackstone ($25.0 billion), Blue Owl Capital ($6.9 billion), Cliffwater LLC ($5.2 billion), Starwood Capital ($4.2 billion), Apollo Global Management ($3.4 billion), Bluerock Capital ($3.1 billion), HPS Investment Partners ($2.8 billion), Ares Management ($2.6 billion), Nuveen ($1.4 billion) and FS Investments ($1.3 billion).
Year-to-date through August, non-traded REIT’s have raised $26.0 billion, up from $21.4 billion for the same period of 2021. Blackstone leads 2022 fundraising with $15.4 billion, followed by Starwood Capital with $4.2 billion. FS Investments ($1.2 billion), Ares Real Estate Group ($1.2 billion) and Hines ($809 million) round out the top five fundraisers. Newly effective Apollo Realty Income Solutions, as of June 29, 2022, and PGIM Private Real Estate Fund, as of Aug. 15, 2022, have not yet reported fundraising.
Non-traded perpetual-life business development companies have raised $18.7 billion, up from $8.8 billion during the comparable period of 2021. Blackstone leads fundraising with $9.6 billion raised. Blue Owl Capital ($3.7 billion), HPS Investment Partners ($2.8 billion), Apollo Global Management ($2.1 billion), Brookfield/Oaktree ($320 million) and Nuveen Churchill ($264 million escrow break) round out 2022 fundraising.
“The non-traded BDC space continues its staggering rate of capital formation, up 113% from this time last year,” according to Randy Sweetman, executive managing director of Stanger. “Nuveen Churchill broke escrow in August, while Ares, Bain Capital and T. Rowe Price OHA were recently joined by Fidelity in the pre-effective pipeline.”
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.