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.
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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.
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