Private Placement Industry Insights as of April 30, 2022

Wednesday, May 18th, 2022 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.

  • 23 new private placements were added to our coverage in April, slower than prior months. On a year-over-year basis, however, we have added more funds than last year (+15%), and these funds are targeting a larger amount of capital (+51%).
  • Activity this year is led by the real estate categories, including Opportunity Zones, real estate LLCs/LPs, private non-traded REITs, and 1031 exchanges. Activity has slowed in the private equity/debt and hedge fund categories while activity within the energy, managed futures, and preferred segments are flat year-over-year.
  • As of May 1st, AI Insight covers 197 private placements currently raising capital, with an aggregate target raise of $21 billion and an aggregate reported raise of $9 billion or 43% of target.
  • Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs/LPs and private REITs represent the largest component of our private placement coverage at 75% of funds and 61% of target raise. Private equity/debt funds represent 13% of funds and 24% of target raise, although this does include six private market feeder funds that do not specify an offering target.
  • In terms of coverage by general objective, income is the largest component at 55% of funds, while growth and growth & income follow at 30% and 16%, respectively.
  • The average size of the funds currently raising capital is $107 million, ranging from $4.0 million for a private managed futures fund to $2.0 billion for a private BDC.
  • 77% of private placements we cover use the 506(b) exemption, 14% use 506(c) and 9% have not yet filed their Form D with the SEC.
  • 22 private placements closed to new investors in April and 101 have closed year-to-date. Funds that closed this year have been on the market for an average of 272 days and reported they raised 78% of target on average.

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 and Interval Funds. Receive up to 22 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 April 30, 2022, 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.

© 2022 Institutional Capital Network, Inc. All Rights Reserved.