Non-Traded BDC Redemptions Spike in Q4 While Real Estate Programs Show Signs of Resurgence
Shrewsbury, New Jersey, January 28, 2026 – Robert A. Stanger & Company, Inc., a nationally recognized leader in non-listed alternative investment products, has published its December 2025 issue of The Stanger Market Pulse, complete with fundraising data of all alternative investments offered via the retail pipeline. These include public non-traded REITs, public non-traded BDCs, interval funds, non-traded preferred stocks, Delaware statutory trusts (“DSTs”), opportunity zone funds, private BDCs, private REITs and other private placements including infrastructure and private equity offerings.
Alternative Investment fundraising for 2025 totaled approximately $203.7 billion, a 35.5% increase from last year and a staggering 121.9% increase from 2023 levels. As previously reported by Stanger, the current surge of retail capital into alternative investments has helped drive fundraising totals past the $1 trillion mark over the last twenty-five years. Fundraising in 2025 was led by business development companies at $63.0 billion, interval funds at $39.8 billion and tender offer funds at $33.1 billion. Publicly registered and private BDC fundraising finished the year up 13.9% as compared to 2024, while recent scrutiny around loan defaults, valuation transparency and interest rate uncertainty have contributed to a year-end slowdown in monthly fundraising levels and increased investor demand for redemptions. Combined monthly fundraising in publicly registered and private BDCs posted $4.8 billion of sales in December 2025, a 22.6% decline from their peak of $6.2 billion raised in March this year.
According to Kevin T. Gannon, Chairman and CEO of Stanger, “Publicly registered and private BDC fundraising surpassed $63 billion in 2025, however, fourth quarter sales and preliminary redemption results tell the story of a new market dynamic. BDC fundraising in Q4 recorded a 10.1% decline from the prior quarter and redemptions reported by publicly registered non-traded BDCs to date report a combined increase of 200% by BDCs with aggregate NAVs exceeding $1 billion. With several BDCs expected to report in the coming weeks, Stanger believes this trend will continue for the quarter and into the new year.”
Fundraising in public non-traded REITs remained relatively flat year-over-year with $5.7 billion raised in 2025 as compared to $6.1 billion in 2024. Their private counterparts, however, recorded $9.5 billion in 2025 capital formation and have surged 80.9% from their 2024 total. Similarly, DST fundraising posted $8.2 billion* of fundraising in 2025, a 45.4% increase from the prior year. Most recently, December 2025 saw monthly fundraising of $3.7 billion across DSTs, public and private non-traded REITs, a 152.6% increase from their collective low of $1.5 billion raised in February this year.
“The recent rise in fundraising levels for non-traded REITs and DSTs has coincided with performance rebounding significantly after two challenging years,” added Gannon. “After declining 3.0% in 2023 and moderately rebounding to 1.1% in 2024, the Stanger NAV REIT Total Return Index is expected to close 2025 at an all-time high, posting a preliminary 5.8% total return for the year. The combination of strengthening returns and increased capital inflows suggests that non-traded REITs are regaining their footing amid renewed investor confidence heading into 2026.”
Stanger’s survey of top sponsors tracks fundraising of all alternative investments offered via the retail pipeline 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, and other private placement offerings.
According to Randy Sweetman, Executive Managing Director of Robert A. Stanger & Co., Inc., “The top ten fundraisers in the alternative investment space in 2025 include Blackstone ($28.0 billion), KKR ($16.6 billion), Cliffwater ($16.5 billion), Ares ($16.0 billion), Blue Owl ($15.3 billion), Apollo ($10.2 billion), StepStone ($7.5 billion), Brookfield ($5.3 billion), Goldman Sachs ($4.7 billion) and HPS Investment Partners ($4.6 billion).”
To request a copy of The Stanger Market Pulse or for further information on all available Stanger Publications, please contact:
Gregory R. DiSalvo
(732) 389-3600
gdisalvo@rastanger.com
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About Robert A. Stanger & Co., Inc.
Robert A. Stanger & Co., Inc., founded in 1978, is a nationally recognized investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
Stanger is also well known for its industry leading publications: The Stanger Report, a nationally recognized comprehensive report focused on non-traded REIT and BDC investing, including aggregate market statistics, total returns by company and total return indices, fee structure comparisons, and profiles of current offerings; The Stanger Market Pulse, a monthly deep-dive into alternative investment fundraising; The Stanger Chairman’s Report, focused on NAV REIT and non-traded BDC sales and redemptions; The Stanger Closed-End Fund Report, focused on non-traded interval fund and tender offer fund investing, Stanger Privates, a quarterly publication focused on Private Placement REITs and BDCs exclusively available to Stanger Institutional Access subscribers; and The Alt Street Journal, a weekly newsletter providing an update on industry activities.
For More Information:
Kevin T. Gannon | Chairman & CEO | (732) 389-3600
Robert A. Stanger & Co., Inc.
1129 Broad Street, Suite 201
Shrewsbury, NJ 07702
www.rastanger.com
Member: SIPC
