Alternative Investment Growth Hits $203.7B in 2025

Alternative investment fundraising hit $203.7B in 2025, driven by strong inflows to BDCs, REITs, and DSTs despite Q4 slowdown.

January 29, 2026

Nina Dale

Alternative investment fundraising hit $203.7B in 2025, up 35.5% from 2024.
Non-traded BDCs, interval funds, and tender offer funds led fundraising flows.
Private non-traded REIT and DST capital formation jumped 80.9% and 45.4%, respectively.
Investor redemptions and fundraising slowed in the fourth quarter.

Key Takeaways

Private Capital Surge

AltsWire reports that alternative investment fundraising jumped to $203.7B in 2025, according to Robert A. Stanger & Company. This marks a 35.5% increase year-over-year and an impressive 121.9% surge since 2023. The continued flow of retail capital into alternative investments pushed the sector’s 25-year total above $1T.

Capital formation surged across most categories in 2025, led by non-traded BDCs, interval funds, and private placements like REITs and DSTs.

Leaders and Slowdown Signals

Non-traded business development companies (BDCs) secured $63B, leading all categories. Interval funds and tender offer funds followed with $39.8B and $33.1B, respectively. However, late-year concerns—ranging from loan defaults to valuation clarity and interest rate shifts—coincided with heightened investor redemptions and a slowdown. Publicly registered and private BDCs saw monthly fundraising drop to $4.8B in December, down 22.6% from the March peak.

REITs and DSTs Rebound

Public non-traded REIT fundraising remained steady at $5.7B in 2025. Private non-traded REITs climbed to $9.5B, an 80.9% jump, while Delaware statutory trusts (DSTs) grew fundraising by 45.4% with $8.2B. In December, these vehicles combined for $3.7B in capital inflows, a dramatic rebound from earlier 2025 lows. This renewed interest in DSTs reflects broader investor momentum in tax-advantaged structures increasingly favored across CRE strategies.

REIT performance rebounded sharply in 2025, with total returns climbing to 5.8%, boosting investor confidence after two slower years.

Who’s Raising the Most

Blackstone topped the list of alternative investment fundraisers in 2025 with $28B. Other leading managers included KKR, Cliffwater, Ares, and Blue Owl, each raising at least $15B. Stanger’s survey tracks a broad swath of retail pipeline alternatives, capturing momentum in various asset classes.

Blackstone led 2025 with $28B raised, followed by KKR, Cliffwater, and Ares. The top five firms accounted for over 45% of total fundraising.

Outlook for 2026

Rising returns helped renew investor confidence in non-traded REITs, with the Stanger NAV REIT Total Return Index expected to hit a record high of 5.8% for 2025. While 2025 saw alternative investment growth across vehicles and sponsors, investor preferences are shifting in response to ongoing market dynamics. The industry enters 2026 with increased scrutiny on redemptions and asset performance, but robust capital inflows continue to support foundational alternative investment growth.