Tuesday, September 17th, 2024 and is filed under Industry Reporting
We recently released our August Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Twenty-three new private placements were added to iCapital’s investment product training platform, in August. Overall, this year’s activity is tracking slightly higher than last year, with 8% more funds added and those funds targeting 22% more capital.
- As of September 1st, iCapital Insight covers 291 private placements currently in the market, targeting an aggregate raise of $64.1 billion and an aggregate reported raise of $46.4 billion or 72% of target.
- The average capital raise target of the funds currently on the platform is $245 million for those that report a target. Funds range in size from less than $10 million for a small real estate fund to a recently increased $17.1 billion AUM diversified private equity and debt fund.
- Real estate-related funds continue to dominate our coverage, representing 69% of the total number of funds and 41% of aggregate target raise. However, private equity and debt’s share of the target raise is likely much higher as there are a number of access funds without specific dollar targets.
- Income remains the largest investment objective category at 55% of funds, while growth and growth and income follow at 24% and 19%, respectively.
- In terms of regulatory exemptions, 56% of private placements on the platform utilize the 506(b) exemption, while 37% use 506(c) and 7% have not yet filed their Form D with the SEC.
- Eleven private placements closed to new investors in August and 131 have closed year-to-date. On average, these funds spent 430 days on the platform, with 119 of the funds reporting a raise at 80% of target, on average.
Source: AI Insight by iCapital, as of August 31, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of August 31, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Wednesday, August 21st, 2024 and is filed under Industry Reporting
We recently released our July Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Twenty-two new private placements were added to iCapital’s investment product training database in July, measurably more than prior months and on par with last month primarily due to an increase in 1031 exchanges, other real estate funds, and private equity/debt funds. Overall, this year’s activity is tracking close to last year, with 3% more funds added and those funds targeting 26% more capital.
- As of August 1st, AI Insight by iCapital covers 279 private placements currently in the market, targeting an aggregate raise of $63.5 billion and an aggregate reported raise of $45.2 billion or 71% of target.
- The average capital raise target of the funds currently on the platform is $257 million for those that report a target. Funds range in size from less than $10 million for a small real estate fund to a recently increased $17.1 billion AUM diversified private equity and debt fund.
- Real estate-related funds continue to dominate our coverage, representing 70% of the total number of funds and 42% of aggregate target raise. However, private equity and debt’s share of the target raise is likely much higher as there are a number of access funds without specific dollar targets.
- Income remains the largest investment objective category at 54% of funds, while growth and growth and income follow at 24% and 20%, respectively.
- In terms of regulatory exemptions, 56% of private placements on the platform utilize the 506(b) exemption, while 37% use 506(c) and 7% have not yet filed their Form D with the SEC.
- Twenty-five private placements closed to new investors in July and 121 have closed year-to-date. On average, these funds spent 440 days on the platform, with 109 of the funds reporting a raise at 80% of target, on average.
Source: AI Insight by iCapital, as of July 31, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of July 31, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.
ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Thursday, July 25th, 2024 and is filed under Industry Reporting
We recently released our June Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Twenty-four new private placements were added to iCapital’s investment product training database in June, measurably more than prior months primarily due to an increase in 1031 exchanges, other real estate funds, and private equity/debt funds. Overall, this year’s activity is tracking close to last year, with 6% less funds added but those funds targeting 15% more capital.
- As of July 1st, AI Insight by iCapital covers 282 private placements currently in the market, targeting an aggregate raise of $61.8 billion and an aggregate reported raise of $43.4 billion or 70% of target.
- The average capital raise target of the funds currently on the platform is $243 million for those that report a target. Funds range in size from less than $10 million for a small real estate fund to a recently increased $16 billion AUM diversified private equity and debt fund.
- Real estate-related funds continue to dominate our coverage, representing 71% of the total number of funds and 45% of aggregate target raise. However, private equity’s share of the target raise is likely much higher as there are a number of access funds without specific dollar targets.
- Income remains the largest investment objective category at 55% of funds, while growth and growth and income follow at 23% and 19%, respectively.
- In terms of regulatory exemptions, 55% of private placements on the platform utilize the 506(b) exemption, while 37% use 506(c) and 8% have not yet filed their Form D with the SEC.
- Twenty private placements closed to new investors in June and 96 have closed year-to-date. On average, these funds spent 425 days on the platform, with 88 of the funds reporting a raise at 82% of target, on average.
Source: AI Insight by iCapital, as of June 30, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of June 30, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Thursday, May 16th, 2024 and is filed under Industry Reporting
We recently released our April Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Fourteen new private placements were added to iCapital’s investment product training database in April, less than prior months primarily due to slower activity in the real estate categories after a strong start to the year. Overall, this year’s activity is tracking close to last year, with 6% more funds added and those funds targeting the same amount of capital as last year.
- As of May 1, AI Insight by iCapital covers 278 private placements currently in the market, targeting an aggregate raise of $52.5 billion and an aggregate reported raise of $35.3 billion or 67% of target.
- The average capital raise target of the funds currently on the platform is $136 million for those that report a target. Funds range in size from less than $10 million for specified 1031 exchange fund to a recently increased $15 billion AUM diversified private equity and debt fund.
- Real estate-related funds continue to dominate our coverage, representing 72% of the total number of funds and 48% of aggregate target raise. However, private equity’s share of the target raise is likely much higher as there are 14 funds that are part of institutional funds without specific dollar targets.
- Income remains the largest investment objective category at 55% of funds, while growth and growth and income follow at 24% and 19%, respectively.
- In terms of regulatory exemptions, 57% of private placements on the platform utilize the 506(b) exemption, while 35% use 506(c) and 8% have not yet filed their Form D with the SEC.
- Twenty-two private placements closed to new investors in April and 65 have closed year-to-date. On average, these funds spent 397 days on the platform, with 44 of the funds reporting a raise at 93% of target, on average.
Source: AI Insight by iCapital, as of April 30, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of April 30, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Tuesday, March 12th, 2024 and is filed under Industry Reporting
We recently released our February Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Thirteen new private placements were added to investment product training in February, reversing an uptick in January primarily due to sluggish activity in the real estate categories. Overall, there have been roughly 3% fewer funds added this year, seeking to raise 13% less capital. The only categories up from last year are the niche categories – energy and conservation funds, although these two combined represent four new funds to the platform, a very small absolute number compared to the other categories. 1031 exchanges had a strong January but are back down to even with last year, while the non-tax real estate category is now 38% below. Even with the addition of three funds in the private equity/debt category, this is still on par with last year and this year’s funds are targeting 24% less capital.
- As of March 1, AI Insight by iCapital covers 272 private placements currently raising capital, with an aggregate target raise of $50.9 billion and an aggregate reported raise of $34.6 billion or 68% of target.
- The average size of funds currently raising capital is $187 million. Funds range in size from $3.5 million for a specified industrial 1031 exchange to a recently increased $15 billion AUM diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 71% of the total number of funds and 48% of aggregate target. The percentage of target continues to trend down as larger private equity and hedge funds have been added along with the slowdown in real estate. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 13 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 55% of funds, while growth and growth and income follow at 24% and 19%, respectively.
- 60% of private placements we cover use the 506(b) exemption, 33% use 506(c) and 7% have not yet filed their Form D with the SEC.
- Twelve private placements closed to new investors in February and 31 have closed year-to-date, having been on the platform for an average of 378 days. The 26 funds that reported a raise at close raised 90% of target, on average.
- According to Pitchbook, overall private capital fundraising was down 20% in 2023 from 2022, with much dispersion in activity ranging from 47% less capital closed on for venture capital and 41% less for real estate, to 65% more for secondaries funds. Fewer funds closed overall, down 48% from 2022. However, Pitchbook noted that capital raise numbers for private markets is on a lag as funds are finalizing closings, and that most likely the end result will show that last year was roughly the same as 2022 – down from the peak in 2021 and more in-line with pre-pandemic fund flows. Another trend noted was the “denominator effect” is no longer an issue limiting investment in private market funds, which bodes well for fundraising going forward. Strong public market returns, and private market write-downs have balanced out private market weightings in portfolios.
- Preqin reported that fundraising concentration to the largest managers has increased over the last decade but has leveled out overall other than less mature categories. The Gini co-efficient, which measures the dispersion of managers and funds raised over time with 0 being perfect equality and 1 being perfect inequality, has increased from 0.67 in 2004 to 0.81 in 2023. The report suggests that the more mature markets such as private equity have reached equilibrium with this concentration, while less mature markets such as private debt and real estate may continue to see increases in concentration. In these markets, the large, institutional early movers will represent a disproportionate amount of the market while it is maturing.
- According to Pitchbook, private equity exhibited a 0.77 correlation to the S&P 500 from 2000 to year-end 2023. Interestingly, secondaries provided the lowest correlation at 0.23, along with the lowest correlation to other traditional asset classes. This was lower than the correlation of real estate or private debt strategies, which were reported at 0.30 and 0.43.
- iCapital recently published an Investment Market Strategyreport highlighting the benefits of adding alternatives to an investment portfolio. Historical analysis shows that adding a 20% allocation to a diversified set of alternatives, including private equity, private debt, real estate and hedge funds, lifted returns by 100 basis points over the last 16 years while reducing volatility. The analysis showed improvements in returns in 98.6% of modeled scenarios, with the portfolio including alternatives outperforming most strongly during weaker markets. This makes sense given the lower correlations and strengthens the case for an allocation going forward.
- iCapital also recently published a new Market Pulse report,Signs Point to an Improving Equity Exit Environment. While private equity deal activity has been sluggish the last two years, increasing hold periods to well above long-term averages, recent activity and valuations suggest that a turnaround is upon us. Exit activity was down again in Q4 2023, but the rate of decline eased from prior quarters and the trend is positive. Another positive signal from this report is the volume of US leveraged finance activity, which skyrocketed in January and was more than 2.5 times the amount of activity last January. This means companies are positioning for increased activity. Additionally, the public markets have repriced, up 39% from their lows, and public market valuations are higher, often a leading indicator for private market valuations.
Source: AI Insight by iCapital, as of February 29, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of February 29, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Tuesday, February 13th, 2024 and is filed under Industry Reporting
We recently released our January Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Twenty new private placements were added to investment product training in January, up from 15 last month and roughly 33% more on a year-over-year basis. After a slow year in 2023, where lower fund formation led to fewer funds added to investment product training, it is good to see this uptick kick off in 2024. All the categories except Opportunity Zones are flat to up in terms of new funds being added. The niche sectors are still seeing the strongest growth, although activity in 1031 exchanges and non-tax-focused real estate funds picked up modestly in January after weakness last year. While there were more new funds added, the real estate funds were smaller and seeking to raise less capital than those added at this time last year. This brought down the overall total, with funds added in January targeting 39% less capital on a year-over-year basis.
- As of February 1, AI Insight by iCapital covers 270 private placements currently raising capital, with an aggregate target raise of $50.5 billion and an aggregate reported raise of $34.3 billion or 68% of target.
- The average size of funds currently raising capital is $188 million. Funds range in size from $3.8 million for a real estate property improvement fund to a recently increased $14.4 billion AUM diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 73% of the total number of funds and 49% of the aggregate target. The percentage of target is down significantly as larger private equity and hedge funds have been added along with the slowdown in real estate. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 12 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 55% of funds, while growth and growth and income follow at 23% and 20%, respectively.
- 61% of private placements we cover use the 506(b) exemption, 32% use 506(c) and 7% have not yet filed their Form D with the SEC.
- Nineteen private placements closed to new investors in January, having been on the platform for an average of 379 days. The fourteen funds that reported a raise at close raised 81% of target, on average.
- Pitchbook recently released its Private Capital Benchmarks performance update, with preliminary data for Q3 2023 and final data for Q2. Over the 1-year period ending September 30th, real assets excluding real estate posted the strongest returns at 9.38%, followed by private debt (+6.94%) and private equity (+6.56%). Venture capital was the worst performing category, down 7.96%, while real estate was down 1.23%. Q3 saw a little less diversion in performance among the categories, with the top performing category – real estate – up 2.34% while venture capital declined 0.66%. Even with the last couple of years of challenging data for venture and other more growth-focused private markets, over the 15-year time horizon growth/expansion equity still tops the chart along with buyouts and venture capital, all posting double-digit returns, while private debt and real estate settle in at the bottom of the pack, posting their historical income-plus returns in the upper single-digit range.
Source: AI Insight by iCapital, as of January 31, 2024. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of January 31, 2024. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Wednesday, January 17th, 2024 and is filed under Industry Reporting
We recently released our December Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Fifteen new private placements were added to investment product training in December, for a total of 203 new funds added for the full year. This was a slower year than last, with a strong start but a mid-year trough, especially in the real estate categories. Despite growth in energy, hedge funds, and preferred offerings, which tend to represent a smaller component of the education platform, overall new fund activity is well below last year. 38% fewer funds were added, and those that have been added are seeking to raise 58% less capital.
- While activity has slowed, we have seen continued additions of funds providing access to private equity and hedge fund strategies that were either previously not available to individual investors or available to investors overseas. These feeder or access funds adding investment product training is a positive sign for the private markets industry – investors who make informed decisions stay invested longer. Additionally, we continue to see new sponsors adding education for their funds.
- As of January 1, 2024, AI Insight by iCapital covers 268 private placements currently raising capital, with an aggregate target raise of $50 billion and an aggregate reported raise of $33 billion or 66% of target.
- The average size of funds currently raising capital is $187 million. Funds range in size from $3.8 million for a real estate property improvement fund to a recently increased $13.6 billion AUM for a diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 73% of the total number of funds and 51% of aggregate target. The percentage of target is down significantly as larger private equity and hedge funds have been added along with the slowdown in real estate. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 12 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 54% of funds, while growth and growth and income follow at 25% and 20%, respectively.
- 61% of private placements we cover use the 506(b) exemption, 32% use 506(c) and 7% have not yet filed their Form D with the SEC.
- Forty-one private placements closed to new investors in December and 203 closed for the full year 2023. The 170 funds that reported a raise at close were on the market for an average of 314 days and raised 88% of target on average.
- iCapital recently released its 2024 Market Outlook, which forecasts a mix of lower inflation and Fed rate cuts along with a broader set of opportunities for investors than in 2023. In this context, the top ideas for 2024 include newer vintage venture capital, and unprofitable technology (a beneficiary of rate cuts) for growth, direct lending, real estate debt, and municipal bonds for income, and macro hedge funds for diversification.
- Along with the Outlook, iCapital released its Q4 Alternative Asset Class Strategy Rankings, which rates each asset class as negative, neutral, or positive along with the trend from the prior quarter. In this iteration, iCapital upgraded early and late-stage venture capital to neutral and positive, respectively. Within the real assets category, energy was upgraded to positive. All other asset classes remained the same. Real estate was separated into core and value-added, “to better reflect the opportunities within this large asset class.” The firm is positive on value-add and opportunistic real estate strategies but maintains its negative view on core real estate given that they “continue to see challenges ahead for core real estate.”
Source: AI Insight by iCapital, as of December 31, 2023. Based on programs activated on the AI Insight platform as of this date.
For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Source: AI Insight by iCapital, as of December 31, 2023. Based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2024 Institutional Capital Network, Inc. All Rights Reserved.
Thursday, December 14th, 2023 and is filed under Industry Reporting
We recently released our November Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Fourteen new private placements were added to investment product training in November, fewer than last month but more than the trough in July. We continue to see weaker activity in the real estate segment, which has historically been a large component of the platform. 1031 exchange activity remains stagnant and even the smaller private real estate deals have slowed. Despite growth in energy, hedge funds, and preferred offerings, overall new fund activity on the platform is well below last year. On a year-to-date basis 37% fewer funds have been added and those that have been added are seeking to raise 57% less capital.
- While activity has slowed, we have seen continued additions of funds providing access to private equity and hedge fund strategies that were either previously not available to individual investors or available to investors overseas. These feeder or access funds adding education is a positive sign for the private markets industry – investors who make informed decisions stay invested longer. Additionally, we continue to see new sponsors adding education for their funds, including two new sponsors added this month.
- As of December 1st, AI Insight by iCapital covers 294 private placements currently raising capital, with an aggregate target raise of $52 billion and an aggregate reported raise of $35 billion or 67% of target.
- The average size of funds currently raising capital is $177 million. Funds range in size from $3.8 million for a real estate property improvement fund to a recently increased $13.6 billion AUM for a diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 69% of the total number of funds, and 49% of aggregate target. The percentage of target is down significantly as larger private equity and hedge funds have been added along with the slowdown in real estate. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 12 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 55% of funds, while growth and growth and income follow at 22% and 19%, respectively.
- 59% of private placements we cover use the 506(b) exemption, 32% use 506(c) and 9% have not yet filed their Form D with the SEC.
- Ten private placements closed to new investors in November and 162 have closed year-to-date. The 129 funds that reported a raise at close were on the market for an average of 318 days and raised 91% of target on average.
- Pitchbook recently released its Q2 2023 Global Fund Performance Report, with preliminary private market returns for Q2. Overall private capital posted a quarterly return of 2.1% in Q2, down from 3.3% in Q1 but not returning to negative territory like we saw in 2022. Smaller venture capital deals, opportunistic real estate, and distressed private debt dragged the overall return down, although it should be noted that the index returns are based on cash flow and net asset data, which tends to be less predictable in these higher risk categories. Buyout and real assets strategies lead on the upside.
For illustrative purposes only. Past performance is not indicative of future results.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Chart and data as of November 30, 2023, based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by iCapital, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. No offering of a fund is being made hereby. Any offer or solicitation of fund interests shall be made pursuant to the applicable fund’s offering documents, which will contain information regarding the applicable fund’s investment objectives, the terms and conditions of an investment in such fund, and certain risks and tax information related to an investment in such fund.
The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein.
Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2023 Institutional Capital Network, Inc. All Rights Reserved.
Monday, November 13th, 2023 and is filed under Industry Reporting
We recently released our October Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.
- Seventeen new private placements were added to investment product training in October, continuing an uptrend from the low in July but still well below the 25-30 per month regular pace. Most of the slowdown is due to continued weakness in the real estate segment, a historically large component of the platform. 1031 exchange activity remains stagnant and even the smaller private real estate deals have slowed. Despite growth in energy, hedge funds, and preferred offerings, overall new fund activity on the platform is well below last year. On a year-to-date basis 38% fewer funds have been added and those that have been added are seeking to raise 58% less capital.
- While activity has slowed, we have seen continued additions of funds providing access to private equity and hedge fund strategies that were either previously not available to individual investors or available to investors overseas. These feeder or access funds adding education is a positive sign for the private markets industry – investors who make informed decisions stay invested longer. Additionally, we continue to see new sponsors adding education for their funds, including two new sponsors added this month and four last month.
- As of November 1st, AI Insight by iCapital covers 286 private placements currently raising capital, with an aggregate target raise of $49 billion and an aggregate reported raise of $31 billion or 63% of target.
- The average size of funds currently raising capital is $172 million. Funds range in size from $3.8 million for a real estate property improvement fund to a recently increased $13.6 billion AUM for a diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 69% of the total number of funds, and 49% of aggregate target. The percentage of target is down significantly as larger private equity and hedge funds have been added along with the slowdown real estate. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 12 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 55% of funds, while growth and growth and income follow at 23% and 19%, respectively.
- 61% of private placements we cover use the 506(b) exemption, 31% use 506(c) and 8% have not yet filed their Form D with the SEC.
- Twenty-six private placements closed to new investors in October and 154 have closed year-to-date. The 129 funds that reported a raise at close were on the market for an average of 318 days and raised 91% of target on average.
For illustrative purposes only. Past performance is not indicative of future results.
Access the full Private Placements report and other hard-to-find alts data
AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.
Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.
_________________________________
Chart and data as of October 31, 2023, based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.
The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital. This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by iCapital. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors.
This material may contain forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. Forward looking statements involve significant elements of subjective judgments and analyses and changes thereto and/or consideration of different or additional factors could have a material impact on the results indicated. Due to various risks and uncertainties, actual results may vary materially from the results contained herein. The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein. The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries, including the U.S. This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, including the U.S., where such distribution, publication, availability or use would be contrary to law or regulation or which would subject iCapital to any registration or licensing requirement within such jurisdiction not currently met within such jurisdiction. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions. It is the responsibility of the recipient of this document to comply with all relevant laws and regulations.
Alternative investment products and services may be offered through iCapital Securities, LLC. Structured investment products and services may be offered through Axio Financial LLC and/or SIMON Markets LLC. iCapital Securities LLC, Axio Financial LLC, and SIMON Markets LLC are each a registered broker/dealer, member FINRA and SIPC, and an affiliate of Institutional Capital Network, Inc. (“iCapital”). These registrations and memberships in no way imply that the SEC, FINRA or SIPC have endorsed the entities, products or services discussed herein. iCapital and iCapital Network are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.
© 2023 iCapital, Inc. All Rights Reserved.
Wednesday, October 11th, 2023 and is filed under Industry Reporting
We recently released our September Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight subscriber, log in now to see the entire report.
- Sixteen new private placements were added to investment product training in September, continuing an uptrend from the low in July but still well below the regular pace of 25-30 per month. Most of the slowdown is due to continued weakness in the real estate segment, a historically large component of the platform. 1031 exchange activity remains stagnant and even the smaller private real estate deals have slowed. Despite growth in energy and hedge funds, overall new fund activity on the platform is well below last year. On a year-to-date basis 37% fewer funds have been added and those that have been added are seeking to raise 60% less capital.
- While activity has slowed, we have seen continued additions of funds providing access to private equity and hedge fund strategies that were either previously not available to individual investors or available to investors overseas. These feeder or access funds adding education is a positive sign for the private markets industry – investors who make informed decisions stay invested longer. Additionally, we continue to see new sponsors adding education for their funds, including four new sponsors added this month.
- As of October 1st, AI Insight by iCapital covers 295 private placements currently raising capital, with an aggregate target raise of $50 billion and an aggregate reported raise of $29 billion or 58% of target.
- The average size of funds currently raising capital is $169 million. Funds range in size from $2.6 million for a specified 1031 exchange to a recently increased $13 billion AUM for a diversified private equity and debt fund.
- Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 70% of the total number of funds, and 52% of aggregate target. The percentage of target is down significantly as larger private equity and hedge funds have been added along with the slowdown in 1031 exchange activity. Additionally, private equity’s share of the target raise is likely much higher because, despite the closing of the large private equity fund, there are 13 funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
- In terms of coverage by general objective, income has been and remains the largest component at 58% of funds, while growth and growth and income follow at 21% and 18%, respectively.
- 62% of private placements we cover use the 506(b) exemption, 29% use 506(c) and 9% have not yet filed their Form D with the SEC.
- Sixteen private placements closed to new investors in September and 128 have closed year-to-date. The 109 funds that reported a raise at close were on the market for an average of 307 days and raised 96% of target on average.
For illustrative purposes only. Past performance is not indicative of future results.
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Chart and data as of September 30, 2023, based on programs activated on the AI Insight platform as of this date.
Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.
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