Alternative investment fundraising has dropped by 27 percent from December 2025, to $14.1 billion, according to research by Robert A. Stanger and Co. Business development companies (BDCs) were in the lead with $3.1 billion, followed by interval funds with $3.1 billion and tender offer funds with $2.6 billion.
Investor redemptions grew significantly as BDCs saw a slowdown, with January sales declining 40 percent compared with December, and 49 percent down from March 2025’s high of $6.2 billion.
Stanger predicts an overall decline of 40 percent year-over-year for BDC capital formation in 2026. Delaware statutory trusts (DSTs), non-traded REITs and private placement REITs saw a 23 percent increase, year-over-year, compared to the beginning of January 2025.
