Non-Listed REITs Have Wind at Their Backs

ELLICOTT CITY, MD-August fundraising by the direct investment industry, including both non-listed REITs and business development companies, set a new monthly record on top of the previous month’s record. In a four-week period that traditionally sees a slowdown in activity due to vacations, the industry topped $2.6 billion. Coupled with July’s total, the tally for the most recent two months alone has been close to half the $6.5 billion recorded for the first six months of 2012, according to the Investment Program Association, a trade organization headquartered here.

Data developed by Robert A. Stanger Co., a Shrewsbury, NJ-based investment banking firm that specializes in the sector, show that equity capital flows to direct investments for the first eight months of 2013 reached nearly $16 billion. That compares with $8.9 billion during the same period in ’12, marking a 79% year-over-year increase.