Alternative Investments Surpass Trillion-Dollar Mark

Alternative investments led by private wealth have surpassed $1T in cumulative capital since 2000.
Real estate, closed-end funds, and BDCs are the main categories driving the sector.
2025 fundraising is projected to set a new record at over $200B.
Stanger expects another $1T in capital inflows over the next five years.

Key Takeaways

Private Wealth Fuels Alternative Investments

AltsWire reports that private wealth investors have been the main engine behind a milestone achievement for alternative investments, with total capital formation now exceeding $1T, according to data from Robert A. Stanger & Co. Allocations to real estate, closed-end funds, and business development companies (BDCs) have driven cumulative investments since 2000.

Investment Breakdown

Real estate: $346.3B
Closed-end funds: $312.7B
BDCs: $230.4B
Other strategies: $112.6B

Real estate remains the anchor of the non-traded alternative investments space. However, closed-end funds and BDCs—especially those targeting private credit and equity—have accelerated recent inflows.

Institutional Access Expands

Stanger credits much of the growth to institutional-style investment vehicles becoming available to individual, accredited investors. Products such as non-traded REITs, interval funds, and NAV-based BDCs have opened opportunities in private real estate, credit, and equity. These are now widely offered through independent broker-dealers and registered investment advisers. This trend reflects a broader industry shift toward non-traditional CRE strategies, as institutional and private wealth channels alike diversify beyond core property sectors.

Future Outlook

Alternative investments are projected to remain a central component of high-net-worth portfolios. With annual fundraising expected to exceed $200B this year—nearly ten times 2018 levels—the segment shows no sign of slowing. Stanger anticipates the sector will attract another $1T by 2030 due to ongoing demand for income-oriented and non-correlated strategies amid shifting market conditions.