Private Placement Industry Insights as of May 31, 2021

Wednesday, June 23rd, 2021 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 a Premium Reporting subscriber, log in now to see the entire report. If you don’t have access, you can request a free trial.

• May was a big month in terms of coverage on the AI Insight platform. 21 new funds were added during the month compared to just 13 in April. Real estate activity picked up after a slow start to the year, and new funds were added for the first time this year in the energy and conservation categories.
• 100 new funds have been added this year, putting us ahead in terms of new fund coverage (+54%) and aggregate target raise (+82%).
• As of June 1st, AI Insight covers 192 private placements currently raising capital, with an aggregate target raise of $17.7 billion and an aggregate reported raise of $7.3 billion or 41% of target.
• Real estate-related funds, including 1031s, opportunity zones, and non-1031 real estate LLCs and LPs represent the largest component of our private placement coverage, at 70% of funds and 63% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 18%, but represents more than 30% of target raise even with several funds in the category not reporting a target.
• In terms of our coverage by general objective, income is the largest component at 51% of funds, while growth and growth & income follow at 28% and 19%, respectively.
• The average size of the funds currently raising capital is $97.3 million, ranging from $1.8 million for a specified private equity offering to $1.1 billion for a larger blind pool private equity offering. Eight funds do not report a target or current capital raise.
• 83% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 5% have not yet filed their Form D with the SEC.
• 20 private placements closed to new investors in May and 81 have closed in 2021. Funds that closed this year have been on the market for an average of 346 days. The funds that reported, raised 92% of target. 86% met or exceeded their target and only two funds that closed raised less than half of their target.
• ON DECK: there are seven new private placements coming soon.

For illustrative purposes only.

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Chart and data as of May 31, 2021, 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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