Alts Fundraising: $72.7B in May – BDC Growth
- Alternative investment fundraising has seen a robust start to the year, totaling $72.7 billion through May, according to Robert A.
- Non-traded BDCs have attracted $19.9 billion in new capital, fueled by strong retail demand for yield-oriented credit strategies.
- While non-traded REITs have experienced fundraising growth for three consecutive months, driven in part by transactions such as JLL Income Property Trust's $184 million Delaware Statutory Trust (DST)...
Through May, alts fundraising surged too $72.7 billion, a powerful indicator of market momentum. Driven by investor appetite for yield,business development companies (BDCs) are taking the lead,attracting nearly $20 billion in capital. BDC fundraising experienced a remarkable 33.1% year-over-year increase, underscoring thier growing importance. Non-traded BDCs, in particular, are thriving. Private placements and interval funds also show substantial contributions. The data from Robert A. Stanger & Co.,Inc.’s Stanger Market Pulse, highlights retail-oriented alternative products’ fundraising across various investment channels. Experts forecast BDC fundraising exceeding $60 billion in 2025. News Directory 3 brings you this data. Discover what’s next for BDCs and where the trends are moving.
BDCs Drive Alternative Investment Fundraising too $72.7 Billion
updated June 27, 2025
Alternative investment fundraising has seen a robust start to the year, totaling $72.7 billion through May, according to Robert A. Stanger & Co., Inc.’s Stanger Market Pulse. Non-traded business development companies, or BDCs, are spearheading this growth, demonstrating meaningful market leadership.
Non-traded BDCs have attracted $19.9 billion in new capital, fueled by strong retail demand for yield-oriented credit strategies. Private placements, including infrastructure adn private equity offerings, secured $16.0 billion. Interval funds also contributed substantially, generating $15.2 billion in fundraising activity during the first five months of the year.
While non-traded REITs have experienced fundraising growth for three consecutive months, driven in part by transactions such as JLL Income Property Trust’s $184 million Delaware Statutory Trust (DST) UPREIT deal in May, their fundraising remains 8% below 2024 levels year-over-year. This reflects a more cautious retail appetite for real estate allocations amid ongoing macro uncertainty.
In contrast, BDCs continue to capture a growing share of investment. Non-traded BDC fundraising is up 33.1% compared to last year, propelled by investor demand for higher-yielding private credit exposure.This surge highlights the increasing popularity of BDCs within the alternative investment landscape.
“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 encompasses a wide array of retail-oriented alternative products, including publicly registered non-traded REITs, BDCs, interval funds, non-traded preferred stock, delaware Statutory Trusts, possibility zones, and other private placements across independent broker-dealer and registered investment advisor (RIA) distribution channels. The data provides a comprehensive view of the alternative investment market.
Randy Sweetman, executive managing director of Robert A.Stanger & Co., Inc., noted the top fundraisers in the alternative investment space year-to-date: 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).
What’s next
The trend toward alternative investments, especially BDCs, is expected to continue, driven by investors seeking diversification and higher yields in a complex economic habitat. Experts anticipate that BDCs will remain a dominant force in alternative investment fundraising throughout 2025.