Private Placement Industry Insights as of April 30, 2021

Thursday, May 13th, 2021 and is filed under Industry Reporting

We recently released our April 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.

  • April was the slowest month of the year in terms of private placement fund activity but historically this is the case as well. The 13 funds added during the month was less than half the 28 added in March but is three funds more than April 2020 – which was one of our slowest months ever as the pandemic had started to impact the markets.
  • 79 new funds have been added this year, putting us ahead in terms of new fund coverage (+36%) and aggregate target raise (+44%). Real estate categories have slowed, while our coverage of private equity/debt and hedge funds has increased.
  • As of May 1st, AI Insight covers 194 private placements currently raising capital, with an aggregate target raise of $20.5 billion and an aggregate reported raise of $10.1 billion or 49% of target.
  • Despite a slowdown recently, 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 69% of funds and 55% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 17%. However, our acquisition by iCapital is allowing us to enhance our coverage of private equity and debt more than ever before.
  • In terms of our coverage by general objective, income is the largest component at 49% of funds, while growth and growth & income follow at 30% and 21%, respectively.
  • The average size of the funds currently raising capital is $105.5 million, ranging from $1.8 million for a specified private equity offering to $3.1 billion for a sector specific private BDC. Six funds do not report a target or current capital raise.
  • 85% of private placements we cover use the 506(b) exemption, 12% use 506(c) and 3% have not yet filed their Form D with the SEC.
  • 17 private placements closed to new investors in April and 59 have closed in 2021. Funds that closed this year have been on the market for an average of 352 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 nine new private placements coming soon.

For illustrative purposes only.

 

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Chart and data as of April 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.

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.

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