Retail Alts Fundraising Exceeded Expectations in 2024Retail Alts Fundraising Exceeded Expectations in 2024
The volume of fundraising for alternative investment vehicles through the retail channel reached $122 billion, reports Robert A. Stanger & Co.
The volume of retail fundraising for alternative investments reached $122 billion in 2024, overshooting preliminary projections, according to investment banking firm Robert A. Stanger & Co. Inc. The figure was $17 billion above the previous high of $105 billion reached in 2022 and above Stanger’s own November projection of $120 billion for the year.
Stanger’s figures include fundraising totals for interval funds, BDCs and non-traded REITs. The firm does not track tender offer funds.
Non-traded BDCs proved the most popular alternative vehicle with retail investors, reaching approximately $35.5 billion, with interval funds in second place at $29.5 billion.
“Fundraising in business development companies, interval funds and private placements continue to dominate in the space as investors have shifted their investments away from non-traded REITs in 2024,” Kevin T. Gannon, chairman of Robert A. Stanger & Co., said in a statement. “Credit investments like non-traded BDCs and interval funds have shown higher current returns in the high single-digit to low double-digit distributions yields.”
Fundraising for private placement BDCs totaled about $8.3 billion for the year, for non-traded REITs $6.1 billion, for Delaware Statutory Trusts (DSTs) and TICs $5.5 billion and for private REITs $5.3 billion.
Public alternative investment options described as “other” totaled $7.5 billion in 2024, while private investments in the “other” category totaled $22.9 billion.
Robert A. Stanger also found that Blackstone continued to dominate the alternative investment fundraising space, followed by Cliffwater, Blue Owl Capital, Ares Management Corp. and KKR.
