Alternative Investment Equity Raised in November 2016
December 13, 2016 | by Beth Glavosek | Blue Vault
Blue Vault has compiled sales data on nontraded alternative investments for the month of November. Sales for all categories of alternative investments came in at $621.8 million, and fundraising year to date is $6.27 billion*.
In November, nontraded REITs (NTR) raised $325.1 million with JLL, Griffin, and SmartStop emerging as the market leaders. They raised $57.6 million, $47.7 million, and $30.6 million, respectively.
BDCs raised a total of $87 million in November, while Private Placements raised $93.1 million. Inland continued its market dominance in Private Placements with total sales of $33.3 million or 36% of the market as currently measured by Blue Vault.
Total Interval Fund (Closed-End Fund) sales came in at $116.6 million with Griffin as the market leader at $63.5 million.
Stacy Chitty, Managing Partner of Blue Vault, commented that, “Since we began monthly tracking of all alternative sales (NTR, BDC, Closed-End Funds, and Private Placements) earlier this year, we’ve been able to monitor the overall alternative market more closely and observe trends. 2016 has been a rocky year for BDC and NTR sales, and sales overall as well. Interval Funds and Private Placements are trending upwards. We do expect an overall rebound of sales in 2017, but we don’t know just how much yet. It’s clear that the industry needs to perform. That’s paramount.”
For more information on monthly equity raise collected by Blue Vault, visit our Monthly Sales page.
*Blue Vault did not track all interval fund and private placement sales until August 2016. Therefore, the total alternative investment sales figure YTD is higher than the $6.27 billion listed.
Disclaimer: Monthly sales are provided to Blue Vault by each sponsor and are therefore not guaranteed to be accurate.
I have been using Blue Vault Partners for the past five years. I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs. The reports help me analyze which sponsors are doing a responsible job of managing their offerings. This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.