At a glance
- Through September, credit fundraising fell 48% and hard-asset fundraising rose 39%, while the all-alternatives total dropped 14% to $134.4 billion.
- Private credit assets climbed 17% to $4.1 trillion, the Alternative Credit Council said Oct.
- Advisors moving a client's alternatives allocation toward real assets do so while illiquid products are an SEC exam priority.
Hard-asset funds raised $5.3 billion more than private credit funds in the third quarter, Stanger data show. Through September, credit fundraising fell 48% and hard-asset fundraising rose 39%, while the all-alternatives total dropped 14% to $134.4 billion.
Private credit assets climbed 17% to $4.1 trillion, the Alternative Credit Council said Oct. 22. Closed-end funds keep assets after fundraising stops, so a 48% drop and a 17% rise can coexist. Stanger counts fundraising; the council counts assets.
Advisors moving a client's alternatives allocation toward real assets do so while illiquid products are an SEC exam priority. Examiners will review disclosures for illiquid products and whether recommendations matched client objectives under the agency's 2027 priorities; Reg S-P readiness is on the same list. That tests the file behind an individual recommendation, not a house view.
Fundraising through September: hard assets +39%, private credit -48%
Year-to-date change in alternatives fundraising
- Inflow / above zero
- Outflow / below zero
Show as table
| Label | Value (%) |
|---|---|
| Hard assets | 39% |
| All alternatives | −14% |
| Private credit | −48% |
Where the new commitments went
Rexford Industrial sold $1.3 billion of Southern California industrial property in the third quarter, 25 buildings and 5.5 million square feet, with $500 million of the realignment left to go. NextEra secured $5.7 billion for three federal energy hubs in Texas and Pennsylvania, with Japanese and U.S. Commerce backing and up to 10 gigawatts of gas-fired generation, slated for completion in 2032. Richman Group, No. 6 on NMHC's 2026 list, refinanced three Florida communities with $225 million of 10-year permanent loans. FedEx paid $58.8 million for a 338,000-square-foot Chatham County warehouse it already leased; Truist Equity Funding sold the building at about $174 a square foot. These are transactions, not fundraising commitments.
| Party | Transaction | Size |
|---|---|---|
| Northwind Group | NDF III final close, credit | $1 billion (target $500 million) |
| Rexford Industrial | Q3 Southern California industrial sale, 25 buildings | $1.3 billion |
| NextEra | Three federal energy hubs, up to 10 GW gas-fired | $5.7 billion |
| Richman Group | Three Florida communities, 10-year permanent loans | $225 million |
| Trepp-tracked seniors housing | Hard maturities, 156-loan cohort | $2.24 billion |
| FedEx | Chatham County warehouse, 338,000 square feet | $58.8 million |
Hard assets carry their own maturities. Trepp counts $2.24 billion of hard maturities in a 156-loan seniors housing cohort, more than 95% of it agency-backed, with $232.7 million of that carrying a debt yield below 6%.
Rezoning and grid studies set the pace
TerraWatt wants up to 1 gigawatt of data center capacity on Alton Steel's 381-acre Illinois mill site, built in 200 MW blocks, with a 2027 closing contingent on rezoning and an Ameren Illinois study. In Memphis, the City Council rejected an 18-month data center moratorium on a 6-6 vote with one member absent, then set a 135-day pause tied to Mayor Paul Young's 90-day review.
Credit concentrated rather than stopped
Northwind Group closed its $1 billion debt fund at twice its $500 million target, and Northwind says NDF III is the largest fund in its history, Connect CRE reported.
One-sixth of funds in the Alternative Credit Council's survey report non-accrual rates above 5%. BDC common stocks fell again in the week to Oct. 23, and BDC Reporter's Oct. 24 recap described the declines as almost across the board and flagged earnings season as close.
BDC earnings season is the next public read on non-accrual rates.
Reported by PWD Editors from Stanger, Alternative Credit Council report, Oct. 22, Bank of America family office study, SEC 2027 examination priorities, BDC Reporter, Connect CRE, Trepp, Data Center Dynamics and NMHC 2026 list. Published . Corrections