Non-traded alternative investments, which include private equity, real estate, and infrastructure, have raised a record $104 billion in 2022, according to a Robert A. Stanger & Co. report. This marks a significant increase from the previous year and highlights investors’ growing interest in alternative investments.

The increase in non-traded alternative investments was driven by non-traded real estate investment trusts, which raised $33 billion (a 3% decrease), non-traded business development companies, which raised $24 billion (a 67% increase), interval funds, which raised $24 billion (a 25% increase), and Delaware statutory trusts, which raised $9 billion (a 27% increase).

“Strong total returns have driven overall fundraising during the past three years despite downward trends in the fourth quarter,” said Kevin T. Gannon, chairman of Stanger.

Although non-traded REIT fundraising reached a low of $1.1 billion in November, the total fundraising for 2022 was $33.2 billion, slightly behind the highest-ever annual fundraising record set in 2021 of $34.4 billion.

The most successful fundraisers during 2022 were Blackstone, which raised $31.8 billion primarily through its Blackstone REIT and Blackstone Private Credit Fund, Blue Owl Capital, which raised $10.8 billion in BDCs and private placements, Cliffwater, which raised $7.0 billion in interval funds, Starwood, which raised $5.4 billion in SREIT and Apollo, which raised $4.1 billion in NAV REITs, BDCs, and interval funds.

“The industry successfully met redemptions up to the 5% quarterly cap with sufficient liquidity sleeves on the balance sheets to fund redemptions without tapping real estate asset sales in 2022. We expect to see the same in 2023,” said Gannon.

Stanger’s survey of top sponsors tracks fundraising of all alternative investments offered to retail investors, 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 funds, and other private placement offerings. According to the survey, the top alternative investment sponsors of 2022 are:

• Blackstone ($31.8 billion).
• Blue Owl Capital ($10.8 billion).
• Cliffwater ($7.0 billion).
• Starwood ($5.4 billion).
• Apollo Global Management ($4.1 billion).
• Bluerock Capital Markets ($4.0 billion).
• HPS Investment Partners ($3.5 billion).
• Ares Management ($3.4 billion).
• FS Investments ($1.7 billion).
• Nuveen ($1.6 billion).

The fundraising for non-traded REITs in 2022 reached $33.3 billion, a decrease compared to the $34.4 billion raised during the same period in 2021. Blackstone led the fundraising effort with $19.4 billion, followed by Starwood Capital with $5.4 billion. Other top fundraisers in the non-traded REIT space were Ares Real Estate Group ($1.6 billion), FS Investments ($1.6 billion), and Hines ($1.0 billion). Apollo Realty Income Solutions, which became effective mid-year, reported its first public fundraising data in December. PGIM Private Real Estate Fund (effective 8/15) has yet to report its fundraising numbers.

Robert A. Stanger & Co. Inc. is a financial advisory firm founded in 1978 that specializes in providing a wide range of services to partnerships, real estate investment trusts, and real estate advisory and management companies, including investment banking, financial advice, fairness opinions, and asset and securities valuations. In addition, these services support strategic planning, capital formation, financings, mergers, acquisitions, reorganizations, and consolidations.