Private Placement Industry Insights as of April 30, 2023

Tuesday, May 16th, 2023 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 an AI Insight subscriber, log in now to see the entire report.

  • Eighteen new private placements were added to investment product education in April, five more than March and led by niche strategies including preferred funds and energy. On a year-to-date basis, 25% fewer funds have been added and those that have been added are seeking to raise 31% less capital. While still well below last year, activity has ramped up in the last two months compared to the slowest months early in the year.
  • Much of this slowdown continues to be driven by the real estate categories, specifically 1031 exchanges and non-tax-focused offerings. The only real estate category above last year’s levels is Opportunity Zones, and those funds are targeting less capital.
  • As of May 1st, AI Insight by iCapital covers 269 private placements currently raising capital, with an aggregate target raise of $61 billion and an aggregate reported raise of $40.5 billion or 67% of target.
  • Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent 71% of the total number of funds, and 38% of aggregate target. The percentage of target is down significantly recently as larger private equity and hedge funds have been added along with the slowdown in real estate. Additionally, private equity’s share of the target raise is likely much higher because there are 11 private equity funds that do not report a target or capital raise, as they are seeking instead to raise a percentage of a larger, institutional fund rather than a specific dollar amount.
  • In terms of coverage by general objective, income has been and remains the largest component at 57% of funds, while growth and growth & income follow at 24% and 19%, respectively.
  • The average size of funds currently raising capital is $229.8 million, up from $108.0 million last year and continuing a trend towards larger offerings. Funds range in size from $2.6 million for a specified 1031 exchange fund to a recently increased $15.5 billion target for a diversified private equity fund.
  • 65% of private placements we cover use the 506(b) exemption, 24% use 506(c) and 11% have not yet filed their Form D with the SEC.
  • Eleven private placements closed to new investors in April and 59 have closed year-to-date. The 54 funds that reported a raise were on the market for an average of 286 days and raised 76% of target on average.

For illustrative purposes only. Past performance is not indicative of future results.


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Chart and data as of April 30, 2023, 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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