Private Placement Industry Insights as of January 31, 2021

Friday, February 19th, 2021 and is filed under Industry Reporting

We recently released our January 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.

  • While there was little to no activity in several categories in January, real estate and private equity/debt funds rallied to bring year-over-year new fund coverage and aggregate target raise up significantly (24% and 62%, respectively).
  • As of February 1st, AI Insight covers 177 private placements currently raising capital, with an aggregate target raise of $17.8 billion and an aggregate reported raise of $8.6 billion or 49% 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 75% of funds and 59% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 11%, but tend to be larger and represent 33% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 30% and 16%, respectively.
  • The average size of the funds currently raising capital is $100.5 million, ranging from $1.9 million for a preferred offering to $3.0 billion for a sector specific private equity/debt fund.
  • 78% of private placements we cover use the 506(b) exemption, 12% use 506(c) and 10% have not yet filed their Form D with the SEC.
  • 14 private placements closed in January, having been on the market for an average of 300 days. The 12 funds that reported a raise reported that they raised 73% of target. 64% met or exceeded their target and only one raised less than half of its target.
  • ON DECK: as of February 1st, there were 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.

 

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Chart and data as of January 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.
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.

Private Placement Insights as of December 31, 2020

Friday, January 8th, 2021 and is filed under Industry Reporting

We recently released our December 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 the COVID-19 related slowdown in Q2, AI Insight’s private placement coverage ended the year nearly on par with the record-setting 2019. The number of new private placements added to our coverage during the year was 2 fewer than 2019 (-1.00%), while aggregate target raise of $9.0 billion was roughly 8% less than the target in 2019. The 199 funds added in 2020 were offered by 75 separate sponsors.
  • As of January 1st, AI Insight covers 167 private placements currently raising capital, with an aggregate target raise of $17.1 billion and an aggregate reported raise of $8.6 billion or 50% 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 75% of funds and 60% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 10%, but tend to be larger and represent 32% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 28% and 18%, respectively.
  • The average size of the funds currently raising capital is $102.3 million, ranging from $1.9 million for a preferred offering to $3.0 billion for a sector specific private equity/debt fund.
  • 76% 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.
  • 55 private placements closed in December (higher than average primarily due to the closing of all open conservation funds), with roughly 66% of those reporting a raise meeting or exceeding their target raise. 209 private placements closed in full year 2020, having been on the market for an average of 299 days and reporting they raised 71% of their target on average (of those that reported). 70% met or exceeded targets, and only 12% were able to raise less than half of their target. 11 funds did not report a raise.
  • Seven private placements suspended offerings and one terminated due to uncertainties related to COVID-19.
  • ON DECK: as of January 1st, there were seven new private placements coming soon.

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.

_________________________________

Chart and data as of December 31, 2020, 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. Copyright ©2021 AI Insight. All Rights Reserved.

2020 Year-End Perspective on Alts and 2021 Outlook with AI Insight CEO Sherri Cooke

Tuesday, December 22nd, 2020 and is filed under AI Insight News

AI Insight CEO Sherri Cooke discusses her key reflections for 2020 including how alternative investments played an important role in portfolios and the impacts of Reg BI. She also shares what’s anticipated in 2021. Read the narrative below or listen to the podcast here.

Sherri formed AI Insight in 2005 with the primary goal of providing the financial planning community with a more efficient and consistent way to access factual information on alternative investment programs – and from that vision the AI Insight database was born.

 

Q: What are some of the key reflections you have about 2020 and some points of interest for the coming year?

SC: I would say as a ADISA Board member, I was fortunate to be able to spend quite a bit of time this year collaborating with others in the alternative investment industry focusing on some of the things we can do to make the industry better – and to increase the awareness and understanding of these products within a growing audience. I believe we all have to work together to bring this space to a whole new level. Also, as Reg BI requirements continue, we’re looking at ways to partner with compliance and technology workflow companies that are helping to support these needed processes. We’re also looking to connect with other companies – both inside and outside the traditional alternatives space to further increase consistency and transparency in the industry with an ultimate goal of making it easier to conduct alts business.

Q: How do you think alternative investments played an important role in portfolios this past year, especially given the pandemic?

SC:  We’re always looking for ways to give more to people – who are of course qualified – access to alternative investments to help them really diversify their portfolio in a meaningful way. Our belief is that a person isn’t fully diversified if all of their underlying investments are either in some way tied to the markets or are invested in a fixed income security – which is effectively still tied to the market.

Despite the pandemic – and in some cases as a result of – there are a lot of really solid opportunities to invest in real assets, interesting investment structures, and institutionally supported opportunities through alternative investments that really provide true diversification.

That said, alternatives can certainly be complex and they need to be factually understood and appropriately sold. This industry really needs to educate financial professionals and investors in so many different ways. One of those has to be around creating realistic expectations about what these investments are intended to bring to a diversified investment portfolio…and what they are not. Stocks lose value all the time and there will be alts that don’t perform. As an industry, we really need to do our very best to ensure that these products are properly sold and positioned within client portfolios. And – as with all investments – we support conducting the best possible research and diligence to allow firms and advisors to select best of class – and help the vested financial firms and producers drive product sponsors toward best of class practices.

Q: We know that compliance is often an issue for advisors in considering alternative investments – and regulatory scrutiny continues to increase. The SEC’s Regulation Best Interest implementation took place on June 30. How does AI Insight help streamline Reg BI requirements?

SC: Compliance is one of the things that motivated me to create AI Insight in the first place. I wanted to build capabilities to facilitate due diligence and proper compliance along with education and documentation of these efforts when selling complex products – those products that the regulators have called out as needing heightened supervision or training.

From an audit perspective, we’ve found in any situation of which we’re aware with our clients, if a firm has stayed up-to-date on the requirements around selling different types of investments – and makes sure everyone involved is aware of their obligations, adheres to the processes, and documents their efforts – then the regulators are generally satisfied.  If you fail to make these efforts up front and you’re inconsistent in how you conduct your business from a compliance perspective….you’re just leaving yourself open to trouble.

Reg BI – within the BD community – and I think even though the fiduciary standard has always applied RIA space – we’re going see a whole new layer of extra scrutiny in this regard. The processes that have been central to our platform for years can help support Reg BI requirements and help financial firms and professionals demonstrate the “good faith and reasonable efforts” that Reg BI requires on an ongoing basis. Specifically, we’ve created a comprehensive Reg BI Guide that steps through the Compliance and Care Obligations and correlates the AI Insight support resource to that particular SEC requirement. Again, this is just another way that we help to create efficient and consistent educational and compliance workflows that can help firms at both the product and the firm level.

Q: What is your focus for 2021?

SC: From a business owner’s perspective, ensuring that our team and our product continues to maintain consistent integrity of value and exceptional service; this is the backbone of our business – and making sure that our AI Insight team is challenged and fulfilled in their roles within our company.

From an industry perspective – we believe that there is a tremendous amount of value for advisors to differentiate themselves and bring really great opportunities through the thoughtful and diligent understanding of alternative products. We provide this value by building and bringing together our network of broker-dealers, advisors, RIAs, alternative investment firms and industry partners. Therefore, as in past years, I am always grateful for how far we’ve been able to come and to everyone who has helped us be successful in our efforts to support this industry – and I look forward to working with all of our business partners to explore new possibilities and find what more we can bring to the table for our customers in the new year.

Private Placement Insights as of November 30, 2020

Tuesday, December 8th, 2020 and is filed under Industry Reporting

We recently released our November 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.

  • Private placement fund activity slowed in November although it remains well above the mid-year COVID-19 slowdown. Year-over-year our coverage is down (-4% in new funds and -7% in target raise), especially on the real estate side, while some of the smaller areas of our coverage have increased. Energy, preferred, and private equity/ debt offerings are way up with strategies focused on opportunities created by the COVID-19 market dislocation. The 170 funds added in 2020 were offered by 69 separate sponsors.
  • As of December 1st, AI Insight covers 192 private placements currently raising capital, with an aggregate target raise of $18.6 billion and an aggregate reported raise of $10.2 billion or 55% 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 68% of funds and 59% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 9%, but tend to be larger and represent 29% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 51% of funds, while growth and growth & income follow at 30% and 18%, respectively.
  • The average size of the funds currently raising capital is $97.1 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, 12% use 506(c) and 13% have not yet filed their Form D with the SEC.
  • 17 private placements closed in November, with roughly 83% meeting or exceeding their target raise. 157 funds have closed year-to-date, having been on the market for an average of 330 days and reporting they raised 69% of their target on average. 85% met or exceeded targets, and only 10% were able to raise less than half of their target. Four funds did not report a raise.
  • Seven private placements suspended offerings and one terminated due to uncertainties related to COVID-19.
  • ON DECK: as of December 1st, there were eight new private placements coming soon.

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.

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Chart and data as of November 30, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.

Private Placement Insights as of October 31, 2020

Tuesday, November 10th, 2020 and is filed under Industry Reporting

We recently released our October 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.

  • Private placement fund activity continued its strong pace in October, with more funds added to our coverage in the month than any since March. 26 new funds were added in October, led primarily by real estate funds but also including energy, private equity/debt, and preferred offerings.
  • As of November 1st, AI Insight covers 186 private placements currently raising capital, with an aggregate target raise of $18.2 billion and an aggregate reported raise of $8.34 billion or 46% 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 72% of funds and 59% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 10%, but tend to be larger and represent 29% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 28% and 19%, respectively.
  • The average size of the funds currently raising capital is $98.0 million, ranging from $3.5 million for a single asset real estate fund to $2.8 billion for a sector specific private equity/debt fund.
  • 74% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 13% have not yet filed their Form D with the SEC.
  • 18 private placements closed in October, with roughly 70% meeting or exceeding their target raise. 137 funds have closed year-to-date, having been on the market for an average of 339 days and reporting they raised 68% of their target on average. 72% met or exceeded targets, and only 16% were able to raise less than half of their target.
  • Seven private placements suspended offerings and one terminated due to uncertainties related to COVID-19.
  • ON DECK: as of November 1st, there were seven new private placements coming soon.

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.

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Chart and data as of October 31, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.

NASAA Reg BI Examination Summary and Financial Professional Resources

Tuesday, November 3rd, 2020 and is filed under AI Insight News

NASAA’s Reg BI Implementation Committee conducted an examination initiative to evaluate key industry changes as financial firms seek to comply with the SEC’s Regulation Best Interest requirements.

NASAA – Phase 1 National Exam Initiative 2020

NASAA recently published a report on Phase One of this initiative. The top 10 priority areas included:

  • Variations in the types of products sold
  • Policies, procedures, and practices related to the sale of alternative investments or complex products types
  • Cost comparison due diligence and disclosure practices

 NASAA’s report states, “[Prior to Reg BI], few firms had policies and procedures governing specific product sales (26%) or used tools to assist agents/representatives and investors in comparing investment opportunities (19%).

Top 10 BD Products Top 10 IA Products
1. Mutual funds (66%) Mutual funds (77%)
2. Equities (60%) Equities (77%)
3. Debt/Fixed income (57%) Debt/Fixed income (67%)
4. Standard ETFs (52%) Standard ETFs (67%)
5. Municipal funds (50%) Listed REITs (39%)
6. Variable annuities (49%) No-load products (37%)
7. Listed REITs (44%) Municipal funds (33%)
8. Options (44%) Options (23%)
9. No-load products (38%) Variable annuities (15%)
10. UITs (37%) Leveraged- or inverse-ETFs (15%)

Chart Source: NASAA Reg BI National Examination Initiative Phase One

 

Sales of complex products

“NASAA has focused much of its Reg BI examination focus on complex and high-risk products, namely, private securities, variable annuities, non-traded REITs, and leverage- or inverse-ETFs, due to investor confusion and harm emanating from these products.”

Products All firms combined BD IA
Private securities 7% 21% 3%
Variable annuities 14% 42% 5%
Non-traded REITs 6% 18% 2%
Leveraged- or Inverse-ETFs 9% 15% 7%

Chart Source: NASAA Reg BI National Examination Initiative Phase One

 

What’s Next?

NASAA will conduct a second examination initiative in 2021 to continue their evaluation of key industry changes.

Resources

Private Placement Industry Insights as of September 30, 2020

Tuesday, October 6th, 2020 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.

  • Private placement fund activity ramped up in September, with more funds added to our coverage in the month than any since March. 19 new funds were added in September, led by 1031s, energy, and non-1031 real estate.
  • As of October 1st, AI Insight covers 177 private placements currently raising capital, with an aggregate target raise of $17.1 billion and an aggregate reported raise of $8.4 billion or 49% 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 72% of funds and 60% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 9%, but tend to be larger and represent 27% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 29% and 18%, respectively.
  • The average size of the funds currently raising capital is $96.8 million, ranging from $3.5 million for a single asset real estate fund to $2.8 billion for a sector specific private equity/debt fund.
  • 76% of private placements we cover use the 506(b) exemption, 15% use 506(c) and 10% have not yet filed their Form D with the SEC.
  • 11 private placements closed in September, with all either meeting or exceeding their target raise. 120 funds have closed year-to-date, having been on the market for an average of 333 days and reporting they raised 62% of their target on average.
  • Seven private placements suspended offerings and one terminated due to uncertainties related to Covid-19.
  • ON DECK: as of October 1st, there were seven new private placements coming soon.
  • Listen to the companion podcast for this blog.

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.

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Chart and data as of September 30, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.

 

Private Placement Industry Insights as of August 31, 2020

Wednesday, September 2nd, 2020 and is filed under Industry Reporting

We recently released our August 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.

  • Private placement fund activity remained steady in August. However, our coverage remains down year-over-year after an anemic spring.
  • Thirteen new funds were added to our coverage in August, on par with the last couple of months but well below the 20 or more funds added each month in 2019. Our coverage is down 10.53% in terms of new funds added year-over year, and 28.26% in terms of the aggregate target raise. Fewer funds have been added and they’ve been targeting less capital.
  • As of September 1st, AI Insight covers 169 private placements currently raising capital, with an aggregate target raise of $16.4 billion and an aggregate reported raise of $8.3 billion or 51% 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 60% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 9%, but tend to be larger and represent 28% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 29% and 18%, respectively.
  • The average size of the funds currently raising capital is $96.9 million, ranging from $3.5 million for a single asset real estate fund to $2.8 billion for a sector specific private equity/debt fund.
  • 76% of private placements we cover use the 506(b) exemption, 15% use 506(c) and 10% have not yet filed their Form D with the SEC.
  • 12 private placements closed in August, having raised approximately 57% of their target and having been on the market for an average of 292 days. 109 funds have closed in 2020, having raised 64% of their target. 67% of funds that closed this year met or exceeded their target.
  • Five private placements suspended offerings and one terminated due to uncertainties related to Covid-19.
  • ON DECK: as of September 1st, there were four new private placements coming soon.

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.

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Chart and data as of August 31, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.

Private Placement Industry Insights as of July 31, 2020

Thursday, August 6th, 2020 and is filed under AI Insight News

We recently released our July 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.

  • Private placement fund activity picked up in July with the help of energy and private equity/debt. However, our coverage is down year-over-year after an anemic spring.
  • Thirteen new funds were added to our coverage in July, more than the last couple of months but well below the 20 or more funds added each month in 2019. Our coverage is down 4.26% in terms of new funds added year-over year, and 23.15% in terms of the aggregate target raise. Fewer funds have been added and they’ve been targeting less capital.
  • As of August 1st, AI Insight covers 171 private placements currently raising capital, with an aggregate target raise of $16.5 billion and an aggregate reported raise of $8.2 billion or 50% 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 75% of funds and 61% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 9%, but tend to be larger and represent 27% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 52% of funds, while growth and growth & income follow at 30% and 17%, respectively.
  • The average size of the funds currently raising capital is $96.6 million, ranging from $3.5 million for a single asset real estate fund to $2.7 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.
  • 13 private placements closed in July, having raised approximately 61% of their target and having been on the market for an average of 364 days. 94 funds have closed in 2020, having raised 67% of their target. 71% of funds that closed met or exceeded their target.
  • Five private placements suspended offerings and one terminated due to uncertainties related to COVID-19.
  • ON DECK: as of August 1st, there were three new private placements coming soon, including two opportunity zone funds and one conservation fund.

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.

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Chart and data as of July 31, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.

Private Placement Industry Insights as of June 30, 2020

Monday, July 6th, 2020 and is filed under Industry Reporting

We recently released our June 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.

  • After a slow couple of months, private placement fund formation accelerated in June, led by stronger activity in 1031s and the addition of distressed funds in the wake of the COVID-19 market disruption.
  • As of July 1st, AI Insight covers 171 private placements currently raising capital, with an aggregate target raise of $16.6 billion and an aggregate reported raise of $8.4 billion or 51% of target. The average size of the current funds is $97.1 million, ranging from $3.5 million for a single asset real estate fund to $2.7 billion for a sector specific private equity/debt fund.
  • 13 private placements closed in June, having raised approximately 65% of their target and having been on the market for an average of 408 days. 88 funds have closed in 2020, having raised 67% of their target.
  • Five private placements suspended offerings and one terminated due to uncertainties related to COVID-19.
  • ON DECK: as of July 1st, there were three new private placements coming soon, all opportunity zone funds (QOZs) as the category ramps back up with further regulatory guidance.

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, BDCs,  Interval Funds, and Alternative 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.

_________________________________

Chart and data as of June 30, 2020, 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. Copyright ©2020 AI Insight. All Rights Reserved.