Non-Listed REITs Capitalize on Fundraising Momentum

January 28, 2019

Non-Listed REITs Capitalize on Fundraising Momentum

January 23, 2019 | Beth Mattson-Teig | National Real Estate Investor

Even as publicly-traded equity REITs struggled to shake off negative returns amid stock market volatility, their non-listed peers pulled off a year of both positive performance and strong fundraising.

Non-listed REITs appear to be regaining fundraising momentum as investors look to increase allocations to alternative assets. According to data from Robert A. Stanger, non-listed REITs raised $4.6 billion in 2018. Although that still pales in comparison to the market peak in 2013 when fundraising for the sector reached nearly $20 billion, it is a notable return to a positive trajectory with a year-over-year increase of 9.5 percent.

Several factors are fueling the rise in capital inflows. Chief among them are an evolution in the industry that has resulted in new product structures, new FINRA 1502 regulations that have created added transparency and the repeal of a potentially disruptive Department of Labor rule that was weighing on the market. In addition, the entrance of institutional players such as Blackstone and Starwood has brought more attention—and capital—to the sector. “All of that continues to push a tailwind to the industry,” says Anthony Chereso, president and CEO of the Institute for Portfolio Alternatives (IPA).

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Gil Armour, CFP
February 3, 2016

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.