Private Placement Industry Insights as of September 30, 2021

Tuesday, October 12th, 2021 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 a Premium Reporting subscriber, log in now to see the entire report. If you don’t have access, you can request a free trial.

• Despite weakness in some of the real estate categories, September was another strong month for funds added to our coverage, driven primarily by additions to the hedge fund and 1031 categories. On a year-to-date basis, private equity/debt leads the way, followed by hedge funds and 1031s.
• 197 new funds have been added in 2021 making this a strong year and putting us well ahead in terms of new fund coverage (+63%) and aggregate target raise (+75%).
• As of October 1st, AI Insight covers 213 private placements currently raising capital, with an aggregate target raise of $19.5 billion and an aggregate reported raise of $8.2 billion or 42% of target.
• Real estate-related funds, including 1031s, Opportunity Zones, and non-1031 real estate LLCs/LPs and private REITs represent the largest component of our private placement coverage, at 68% of funds and 62% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 15% but represents 22% 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 54% of funds, while growth and growth & income follow at 30% and 15%, respectively.
• The average size of the funds currently raising capital is $95.4 million, ranging from $5.0 million for a specified real estate fund to $1.1 billion for a private equity tender offer fund.
• 79% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 9% have not yet filed their Form D with the SEC.

18 private placements closed to new investors in September and 153 have closed in 2021. Funds that closed this year have been on the market for an average of 315 days. The funds that reported raised 92% of target. 84% met or exceeded their target and only eight funds that missed their target reported that they raised less than half of target.

For illustrative purposes only.

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Chart and data as of September 30, 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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