Alts Investment Inflows on Pace for $200B in 2025 as Non-Traded BDCs Lead Market
Alternative investment inflows reached approximately $165.7 billion through October, placing the sector on track for a $200 billion annual fundraising run rate, according to The Stanger Market Pulse from Robert A. Stanger & Company, Inc. The strongest contributors so far include non-traded Business Development Companies (BDCs) at an estimated $37.9 billion, followed by private placements—primarily infrastructure and private equity offerings—at $34.5 billion, and interval funds at $33.2 billion.
Non-traded REITs saw an 18.7% month-over-month uptick, aided partly by increased 721 UPREIT activity, but remain 2.7% below last year’s fundraising levels. In contrast, non-traded BDCs continue their record-setting momentum, with inflows up 29.4% year-over-year.
“Non-Traded BDCs through October have already surpassed the 2024 full year fundraising of $35 billion,” said Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc. “Since Stanger began tracking these products in 2008, when the first non-traded BDCs became available in the retail channel, nearly $155 billion of flows have been captured. We expect 2025 capital formation in publicly registered non-traded BDCs to surpass $40 billion, a record for the space.”
Year-to-date, the top capital raisers in the alternatives industry include Blackstone ($23.4 billion), Cliffwater ($14.1 billion), KKR ($13.9 billion), Ares Management ($13.0 billion), and Blue Owl Capital ($12.1 billion), according to Randy Sweetman, Executive Managing Director at Stanger.
Redemption pressures appear to be easing across NAV REITs. Third-quarter redemption activity declined to 2.3% of average aggregate NAV, down from 2.5% in the previous quarter, according to The Stanger Chairman’s Report.
“Non-Traded NAV REIT redemptions levels are well within the expected 5% quarterly cap imposed by most programs,” Gannon noted. “After seven consecutive quarters of redemptions rates exceeding 4% of average aggregate NAV beginning in the fourth quarter of 2022, redemption requests and unsatisfied redemption queues have vastly subsided in 2025. With redemption pressures easing and underlying portfolio performance steadying, the non-traded REIT market is showing signs of stabilization.”
Non-traded BDCs also reported improved redemption trends, falling to 1.8% of average aggregate NAV from 2.4% the prior quarter. The category’s aggregate NAV surpassed $125 billion in Q3 2025, reflecting sustained retail demand for higher-yielding, credit-oriented strategies.
