Private Placement Industry Insights as of February 28, 2021

Thursday, March 18th, 2021 and is filed under AI Insight News

We recently released our February 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. You can also listen to the podcast.

• Private placement fund formation slowed in February from the prior month. However, we continue to see expansion in real estate and private equity/debt categories. Seventeen new private placements were added to our coverage during the month and 38 have been added this year, putting us ahead in terms of new fund coverage (+15%) and aggregate target raise (+50%).
• As of March 1st, AI Insight covers 181 private placements currently raising capital, with an aggregate target raise of $18.5 billion and an aggregate reported raise of $8.9 billion or 48% 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 73% of funds and 58% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 12%, but tend to be larger and represent 35% of aggregate target raise.
• In terms of our coverage by general objective, income is the largest component at 53% of funds, while growth and growth & income follow at 28% and 17%, respectively.
• The average size of the funds currently raising capital is $101.7 million, ranging from $1.9 million for a preferred offering to $3.0 billion for a sector specific private equity/debt fund.
• 75% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 12% have not yet filed their Form D with the SEC.
• 14 private placements closed in February and 28 have closed in 2021. Funds that closed this year have been on the market for an average of 412 days. The funds that reported, raised 91% of target. 82% met or exceeded their target and only two funds that closed raised less than half of their target.
• ON DECK: there are eleven new private placements coming soon.

For illustrative purposes only.

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, Interval Funds, and Alternative Strategy Mutual Funds. Receive up to 24 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.

• Request a sample report
• Watch a demo video
• Request a live demo

_________________________________

Chart and data as of February 28, 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.

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.

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 Institutional Capital Network, Inc. or its affiliates (together “iCapital Network”). Past performance is not indicative of future results. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed, and iCapital Network assumes no liability for the information provided.

Products offered by iCapital Network are typically private placements that are sold only to qualified clients of iCapital Network through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.

Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. (d/b/a iCapital Network). 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.

© 2021 Institutional Capital Network, Inc. All Rights Reserved.