Alternative investment fundraising surged to $109.4 billion through November 2024, according to Robert A. Stanger & Company Inc. DI Wire reports that the growth was primarily driven by non-traded business development companies (BDCs), interval funds, and private placements. Non-traded BDCs raised $32.3 billion, marking a 76 percent increase compared to the same period last year. Interval funds followed with $26.7 billion, while private placements, including infrastructure and private equity offerings, totaled $20 billion.
The shift in investor preferences has reshaped the industry landscape. While fundraising for non-traded real estate investment trusts (REITs) saw a 45 percent decline, credit-focused and private equity investments gained significant momentum.
"Fundraising in BDCs, interval funds, and private placements continues to dominate as investors diversify away from non-traded REITs," Kevin Gannon, CEO of Stanger, explained. DI Wire noted that in 2024, five non-traded BDCs and 29 interval funds became effective, with nearly 40 additional interval funds in the registration pipeline. Gannon reaffirmed Stanger's 2024 projection of $120 billion in alternative investment capital formation, bolstered by robust year-to-date fundraising and recent product launches.
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