Alts Investment Fundraising Tops $72.7B Through May, Led by BDC Surge: Stanger
Alternative investment fundraising totaled approximately $72.7 billion year-to-date through May, with non-traded business development companies (BDCs) continuing to lead the market, according to the latest data from Robert A. Stanger & Co., Inc.’s Stanger Market Pulse.
Non-traded BDCs attracted $19.9 billion in new capital, supported by strong retail demand for yield-oriented credit strategies. Private placements, including infrastructure and private equity offerings, raised $16.0 billion, while interval funds generated $15.2 billion in fundraising activity during the first five months of the year.
For the third consecutive month, non-traded REITs saw fundraising growth, partially driven by transactions like JLL Income Property Trust’s $184 million Delaware Statutory Trust (DST) UPREIT deal in May. However, non-traded REIT fundraising remains 8% below 2024 levels year-over-year, reflecting a more cautious retail appetite for real estate allocations amid lingering macro uncertainty.
Conversely, BDCs continue to capture growing wallet share. Non-traded BDC fundraising is up 33.1% year-over-year, fueled by investor demand for higher-yielding private credit exposure.
“We expect BDC fundraising to exceed $60 billion in 2025 for both publicly registered and private placement products,” said Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc.
Stanger’s survey tracks a broad spectrum of retail-oriented alternative products, including publicly registered non-traded REITs, BDCs, interval funds, non-traded preferred stock, Delaware Statutory Trusts, opportunity zones, and other private placements across the independent broker-dealer and RIA distribution channels.
Randy Sweetman, Executive Managing Director of Robert A. Stanger & Co., Inc., added: “The top fundraisers in the alternative investment space year-to-date are Blackstone ($12.5 billion), Cliffwater ($7.2 billion), KKR ($6.2 billion), Blue Owl Capital ($5.5 billion) and Ares Management Corporation ($5.5 billion).”