Private Placement Industry Insights as of April 30, 2024

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.

 

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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.

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