Alts Fundraising Hits $60.6B in 2025, Led by BDCs, Private Placements: Stanger
Alternative investment fundraising reached approximately $60.6 billion through April 2025, putting the sector on track for an annual run rate of nearly $180 billion, according to the latest Stanger Market Pulse from Robert A. Stanger & Company, Inc.
Leading the charge are non-traded business development companies (BDCs), which have raised an estimated $16.8 billion year-to-date. Other major contributors include private placements—spanning infrastructure, private equity, and other offerings—at $13.7 billion, and interval funds, which brought in $12.2 billion.
“The top fundraisers in the alternative investment space year-to-date are Blackstone ($10.8 billion), Cliffwater ($6.0 billion), Kohlberg Kravis Roberts & Co. ($5.1 billion), Ares Management Corporation ($4.7 billion) and Blue Owl Capital ($4.6 billion),” noted Randy Sweetman, executive managing director of Robert A. Stanger & Co., Inc.,
In conjunction with the Market Pulse, Stanger also released its Q1 2025 Chairman’s Report, which tracks NAV REITs and non-traded BDCs currently raising capital. The report highlights a divergence in momentum between the two sectors: Non-traded REIT fundraising is down 17.7% year-over-year, despite a 27.2% increase from March to April. Non-traded BDC fundraising, by contrast, is up 45.7% over the same period last year.
According to Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc., “Reflecting the generally high yield of BDCs (10%), the regular reporting of NAV per share and the semi-liquid nature of the shares.”
In terms of redemptions, NAV REITs saw redemptions rise to 3.4% of average aggregate NAV in Q1 2025, up from 2.3% the previous quarter, totaling $2.8 billion. That figure, however, remains below the $4.1 billion redeemed in Q1 2024. Non-traded BDCs reported stable redemptions at 1.4% of NAV, consistent with prior quarters and year-over-year levels.
According to Gannon, “The slightly elevated redemption level is well within the expected 5% cap imposed by most programs except Starwood which imposed a 1% cap on quarterly redemption
During the first quarter of 2025, the overall aggregate NAV of the non-traded BDC space soared past $100 billion as retail investors continue to shift their portfolio allocations to BDCs and other credit-oriented products with higher yields.
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 business development companies, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zone, and other private placement offerings.