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).

Read Full Article

Print Friendly, PDF & Email
Go Back
default image

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.

John E. Moriarty, ChFC Founder & President, e3 ConsultantsGROUP December 2015 February 3, 2016