Alts Fundraising Slows as Capital Rotates to Hard Assets from Credit

Alternative investment fundraising moderated in March, totaling approximately $15.0 billion, down 5% from February and 18% below year-ago levels, according to Robert A. Stanger & Company. The slowdown caps a softer first quarter, with total fundraising reaching $45.7 billion—down 10% year over year and 19% sequentially.

Tender offer funds led March inflows with $2.8 billion, followed by business development companies (BDCs) at $2.7 billion and interval funds at $2.5 billion. However, the broader decline was driven largely by weakening demand for credit strategies. BDC fundraising totaled $8.9 billion in Q1, a 45% drop from the prior year, while overall credit fundraising fell 30% to $18.9 billion.

In contrast, capital continues to shift toward hard assets. Real estate strategies raised $7.2 billion in Q1, up 26% year over year, while infrastructure attracted $5.8 billion, up 14%. Combined fundraising for HALO (Hard Assets with Low Obsolescence) strategies reached $13.1 billion, representing a 20% increase from Q1 2025.

“The capital rotation out of private credit is no longer emerging — it’s firmly underway,” said Kevin T. Gannon, Chairman and CEO of Stanger. “Investor demand for private credit has softened meaningfully, while real estate and infrastructure strategies continue to gain traction.”

“Private placements accounted for 51% of total fundraising in Q1 2026, up from 40% a year ago,” added Randy Sweetman, Executive Managing Director at Stanger. “As capital continues to move away from credit, private placement vehicles continue to capture an increasing share.”