Private REITs & BDCs: $85B+ NAV Growth
- Private placement real estate investment trusts (REITs) and business progress companies (BDCs) both saw significant growth in the first quarter of 2025,according to a new report from Robert...
- The Stanger Privates report for Q1 2025 also revealed robust fundraising activity.
- Stanger & Company, Inc., noted the increasing market share of these alternative investments.
Private REITs exploded in Q1 2025, with net asset value (NAV) surging 11% to $21.8 billion, while private BDCs witnessed a 13% leap, reaching $63.5 billion, according to a new report.Fundraising remained robust, with REITs raising $2.1 billion and BDCs securing $4.4 billion. These strong figures demonstrate the increasing market share of private placements within the alternatives market, with private REITs now accounting for nearly 20% of total NT-REITs NAV and private BDCs representing over 37% of NT-BDCs. The SEC’s recent multi-class exemptive relief is set to further boost BDCs. News Directory 3 covered the developments. Discover what’s next for these investment vehicles.
Private Placement REITs and BDCs Experience Growth in Q1 2025
Updated May 27,2025
Private placement real estate investment trusts (REITs) and business progress companies (BDCs) both saw significant growth in the first quarter of 2025,according to a new report from Robert A. Stanger & Co., Inc.The aggregate net asset value (NAV) for private placement REITs reached $21.8 billion, an 11% increase from the previous quarter.Private placement BDCs experienced a 13% jump,hitting $63.5 billion.
The Stanger Privates report for Q1 2025 also revealed robust fundraising activity. REITs raised $2.1 billion, while bdcs secured $4.4 billion during the quarter.
Kevin T. Gannon, chairman and CEO of Robert A. Stanger & Company, Inc., noted the increasing market share of these alternative investments. “Private placement REITs and BDCs are steadily capturing a larger and larger share of the alternatives market,” Gannon said, “with private REITs now accounting for nearly 20% of NT-REITs aggregate NAV and private BDCs representing over 37% of NT-BDCs.”
Mortgage NAV REITs were among the top performers. Principal Credit Real Estate Income Trust and Starwood Credit Real Estate Income Trust led with total returns of 2.6% and 2.5%, respectively. Invesco Commercial Real Estate Finance Trust, another mortgage REIT, stood out with a 10.6% total return over the past year.
Gannon anticipates continued growth in private placements, particularly for BDCs. The SEC’s March 2025 grant of multi-class exemptive relief to private BDCs is expected to enhance their structural versatility and broaden their appeal to investors.
Key transactions in the first quarter included Blue Owl Technology Finance Corp.’s acquisition of Blue Owl Technology Finance Corp.II and the acquisition of Carlyle Secured Lending III by carlyle Secured Lending,which is listed on the NASDAQ.
What’s next
Robert A. Stanger & Co., Inc. expects private placement REITs and BDCs to maintain their growth trajectory, driven by favorable market conditions and regulatory changes.