Private Placement Industry Insights as of January 31, 2024

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.

Private Placement Industry Insights as of December 31, 2023

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.

Private Placement Industry Insights as of November 30, 2023

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.

Private Placement Industry Insights as of October 31, 2023

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.

Private Placement Industry Insights as of September 30, 2023

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.

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 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.

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.

Private Placement Industry Insights as of August 31, 2023

Tuesday, September 19th, 2023 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 subscriber, log in now to see the entire report.

Fifteen new private placements added investment product training in August, a slight pickup from the 12 added 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. Transaction volume in the real estate markets was down 54% year-over-year in Q2 and while there is some indication that leasing velocity ticked up in July and August, buyers and sellers are still not on the same page. Until the real estate markets see a marked improvement in transaction volume, we would expect to see fewer funds formed and added to the platform. 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 61% less capital.
As of September 1st, AI Insight by iCapital covers 293 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 aggregate target is $20 billion below last month, due to the closing of a large private equity fund.
The average size of funds currently raising capital is $170 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 72% of the total number of funds, and 54% 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 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 58% of funds, while growth and growth and income follow at 22% and 18%, respectively.
63% of private placements we cover use the 506(b) exemption, 28% use 506(c) and 9% have not yet filed their Form D with the SEC.
Twenty private placements closed to new investors in August and 113 have closed year-to-date. The 94 funds that reported a raise at close were on the market for an average of 297 days and raised 98% 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 August 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.

Private Placement Industry Insights as of July 31, 2023

Wednesday, August 16th, 2023 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 subscriber, log in now to see the entire report.

Twelve new private placements were added to investment product training in July, the slowest month on record and less than half of the funds added last month. Most of the slowdown is due to weakness in the real estate segment, 1031 exchange activity remains stagnant and even the smaller private real estate deals focusing on opportunistic real estate 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, 33% fewer funds have been added and those that have been added are seeking to raise 55% less capital.
As of August 1st, AI Insight by iCapital covers 298 private placements currently raising capital, with an aggregate target raise of $66.1 billion and an aggregate reported raise of $45.0 billion or 68% of target.
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 38% 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 there are 11 private equity 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 22% and 18%, respectively.
The average size of funds currently raising capital is $222.6 million. Funds range in size from $2.6 million for a specified 1031 exchange fund to a recently increased $16.0 billion AUM for a diversified private equity fund.
64% of private placements we cover use the 506(b) exemption, 26% use 506(c) and 9% have not yet filed their Form D with the SEC.
Nine private placements closed to new investors in July and 93 have closed year-to-date. The 73 funds that reported a raise at close were on the market for an average of 289 days and raised 87% 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 July 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.

Private Placement Industry Insights as of June 30, 2023

Wednesday, July 19th, 2023 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 subscriber, log in now to see the entire report.

Twenty-seven new private placements were added to investment product education in June, continuing an uptrend from the slowest months early in the year. While 1031 exchange activity remains muted, smaller value-added and opportunistic real estate funds have been on the rise, as well as private equity, energy, and unique preferred offerings. Despite a recent pickup in activity, on a year-to-date basis, 27% fewer funds have been added and those that have been added are seeking to raise 54% less capital.
As of July 1st, AI Insight by iCapital covers 295 private placements currently raising capital, with an aggregate target raise of $65.5 billion and an aggregate reported raise of $44.0 billion or 67% of target.
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 40% 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 there are 14 private equity 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 57% of funds, while growth and growth and income follow at 23% and 19%, respectively.
The average size of funds currently raising capital is $221.9 million. Funds range in size from $2.6 million for a specified 1031 exchange fund to a recently increased $16.0 billion AUM for a diversified private equity fund.
67% of private placements we cover use the 506(b) exemption, 23% use 506(c) and 10% have not yet filed their Form D with the SEC.
Fourteen private placements closed to new investors in June and 82 have closed year-to-date. The 73 funds that reported a raise at close were on the market for an average of 285 days and raised 87% 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 June 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 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.

Private Placement Industry Insights as of May 31, 2023

Friday, June 23rd, 2023 and is filed under Industry Reporting

We recently released our May 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.

Twenty-two new private placements were added to investment product education in May, continuing an uptrend from the slowest months early in the year. Real estate offerings remain slower than last year, while other categories such as energy, preferred funds, and hedge funds have seen more funds added this year. On a year-to-date basis, 28% fewer funds have been added and those that have been added are seeking to raise 45% less capital.
Much of this slowdown continues to be driven by the real estate categories, with all of the real estate segments slower than last year including 1031 exchanges, opportunity zones, and the non-tax-focused offerings.
As of June 1st, AI Insight by iCapital covers 282 private placements currently raising capital, with an aggregate target raise of $61.2 billion and an aggregate reported raise of $40.7 billion or 67% of target.
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 39% 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 there are 13 private equity 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 57% of funds, while growth and growth & income follow at 23% and 18%, respectively.
The average size of funds currently raising capital is $217.8 million, up from $108.0 million last year although down from recent months. Funds range in size from $2.6 million for a specified 1031 exchange fund to a recently increased $15.5 billion target for a diversified private equity fund.
64% of private placements we cover use the 506(b) exemption, 25% use 506(c) and 11% have not yet filed their Form D with the SEC.
Nine private placements closed to new investors in May and 68 have closed year-to-date. The 54 funds that reported a raise were on the market for an average of 293 days and raised 75% 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 May 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.

Private Placement Industry Insights as of April 30, 2023

Tuesday, May 16th, 2023 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 subscriber, log in now to see the entire report.

Eighteen new private placements were added to investment product education in April, five more than March and led by niche strategies including preferred funds and energy. On a year-to-date basis, 25% fewer funds have been added and those that have been added are seeking to raise 31% less capital. While still well below last year, activity has ramped up in the last two months compared to the slowest months early in the year.
Much of this slowdown continues to be driven by the real estate categories, specifically 1031 exchanges and non-tax-focused offerings. The only real estate category above last year’s levels is Opportunity Zones, and those funds are targeting less capital.
As of May 1st, AI Insight by iCapital covers 269 private placements currently raising capital, with an aggregate target raise of $61 billion and an aggregate reported raise of $40.5 billion or 67% of target.
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 38% of aggregate target. The percentage of target is down significantly recently 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 there are 11 private equity 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 57% of funds, while growth and growth & income follow at 24% and 19%, respectively.
The average size of funds currently raising capital is $229.8 million, up from $108.0 million last year and continuing a trend towards larger offerings. Funds range in size from $2.6 million for a specified 1031 exchange fund to a recently increased $15.5 billion target for a diversified private equity fund.
65% of private placements we cover use the 506(b) exemption, 24% use 506(c) and 11% have not yet filed their Form D with the SEC.
Eleven private placements closed to new investors in April and 59 have closed year-to-date. The 54 funds that reported a raise were on the market for an average of 286 days and raised 76% 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 April 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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