Private Placement Industry Insights as of July 31, 2024

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.

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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.

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