Private Placement Industry Insights as of August 31, 2021

Wednesday, September 15th, 2021 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.

• Despite a slowdown in 1031 activity, August was another strong month for funds added to our coverage. Private equity/debt, hedge funds, 1031s, and conservation funds have driven growth year-to-date, while opportunity zone activity is the only negative.
• 178 new funds have been added in 2021 making this a strong year and putting us well ahead in terms of new fund coverage (+75%) and aggregate target raise (+109%).
• As of September 1st, AI Insight covers 208 private placements currently raising capital, with an aggregate target raise of $19.7 billion and an aggregate reported raise of $8.5 billion or 43% 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 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 16% but represents 28% of target raise even with several funds in the category not reporting a target.
• In terms of our coverage by general objective, income is the largest component at 54% of funds, while growth and growth & income follow at 29% and 17%, respectively.
• The average size of the funds currently raising capital is $95.5 million, ranging from $1.8 million for a specified private equity fund to $1.2 billion for a larger blind pool private equity fund. Seven funds do not report a target or current capital raise.
• 82% of private placements we cover use the 506(b) exemption, 14% use 506(c) and 4% have not yet filed their Form D with the SEC.
• 24 private placements closed to new investors in August and 141 have closed in 2021. Funds that closed this year have been on the market for an average of 339 days. The funds that reported raised 90% of target. 84% met or exceeded their target and only eight funds that missed their target raised less than half of target.
• ON DECK: there are four new private placements coming soon.

For illustrative purposes only.

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Chart and data as of August 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.

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