BDC Fundraising Declines 55% Year-over-Year
Shrewsbury, New Jersey, June 24, 2026 – Robert A. Stanger & Company, Inc., a nationally recognized leader in non-listed alternative investment products, has published its May 2026 issue of The Stanger Market Pulse, highlighting a sustained year-to-date contraction in non-listed BDC and credit-oriented capital formation and continued rotation toward hard asset strategies. The report tracks capital flows across key product categories, including non-traded REITs, non-traded BDCs, closed-end funds, private placements, and Delaware statutory trusts (“DSTs”).
Through the first five months of 2026, alternative investment fundraising totaled approximately $75.0 billion, down 9% from $82.8 billion in the same period of 2025. The decline was concentrated primarily in BDCs and credit-oriented strategies. Combined publicly registered and private placement BDC fundraising totaled approximately $11.9 billion through May 2026, down 55% year-over-year. Based on most recent reporting, combined BDC redemptions totaled approximately $12.9 billion over the same period, resulting in estimated net outflows of approximately $1.0 billion. Across all credit strategies, year-to-date fundraising totaled approximately $27.9 billion, down 37% year-over-year.
Outside of credit, HALO strategies — hard assets with low obsolescence — continued to show relative strength. Combined real estate and infrastructure fundraising reached approximately $23.1 billion through the first five months of 2026, up 33% from the same period in 2025. Infrastructure strategies led that growth, rising 61% year-over-year, a figure that includes the recent Blackstone Digital Infrastructure Trust (“BXDC”) public offering, while real estate strategies increased 12%.
May’s fundraising data includes Blackstone’s $2.0 billion initial public offering of BXDC, a NYSE-listed, externally managed blind-pool REIT focused on data centers net-leased to hyperscalers. The vehicle represents a meaningful product-structure development in real estate capital formation. While BXDC is not structured as a traditional non-traded NAV REIT, it pairs exposure to a private real estate sector with public-market liquidity, external management by a leading alternative investment sponsor, and a fee structure that Stanger previously estimated to be approximately 44% lower than the conventional NAV REIT structure. Stanger expects other sponsors to explore similar vehicles designed to compete more directly with NAV REITs on liquidity, fees, and market access.
Year-to-date gross fundraising by product category through May 2026, compared with prior years, is summarized in the table below:
“Through five months, 2026 has been defined by a clear rotation out of credit,” said Kevin T. Gannon, Chairman & CEO of Stanger. “BDC fundraising is down more than 50% year-to-date, and credit’s share of the market has fallen from more than half to roughly a third. Investors are not leaving alternatives — they are becoming more selective about where they want exposure, and the data increasingly points toward hard assets with durable demand drivers.”
Gannon added, “BXDC is an important development as it pairs exposure to one of the most sought-after sectors in real estate today with a structure designed to address two of the biggest investor priorities: liquidity and fees. If the vehicle gains traction, other sponsors will take note, and the next phase of capital formation may be defined by sponsors that can pair high-demand hard asset exposure with product structures that deliver better access, liquidity, and value.”
As published in the May 2026 issue of The Stanger Market Pulse, the Top Twenty Sponsors by year-to-date gross fundraising are summarized in the table below:
To request a copy of The Stanger Market Pulse or for more information on all available Stanger Publications, please visit our website or 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
