Private Placement Industry Insights as of June 30, 2021

Wednesday, July 14th, 2021 and is filed under Industry Reporting

We recently released our June 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.

  • The last two months were big months in terms of new funds added to our coverage, with 21 funds added each month compared to 13 in April. Energy, Opportunity Zones, and real estate 1031 exchanges led the way in terms of new fund formation, and we are seeing continued strength in private equity/debt offerings. President Biden’s proposal to reduce or eliminate section 1031 exchanges may be contributing to an increase in this category prior to any changes, something that we continue to watch as it could have an impact on future fund formation. iCapital’s Chief Investment Strategist, Anastasia Amoroso, sees growth in private markets and real estate through 2H, which aligns with the growth we’ve seen in the real estate and private equity/debt categories.
  • 121 new funds have been added in the first half of 2021 making this a strong year and putting us ahead in terms of new fund coverage (+59%) and aggregate target raise (+102%).
  • As of July 1st, AI Insight covers 192 private placements currently raising capital, with an aggregate target raise of $18.8 billion and an aggregate reported raise of $7.7 billion or 41% 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 67% of funds and 60% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 18%, but represents more than 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 52% of funds, while growth and growth & income follow at 27% and 20%, respectively.
  • The average size of the funds currently raising capital is $97.8 million, ranging from $1.8 million for a specified private equity fund to $1.1 billion for a larger blind pool private equity fund. Eight funds do not report a target or current capital raise.
  • 82% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 4% have not yet filed their Form D with the SEC.
  • 18 private placements closed to new investors in June and 100 have closed in 2021. Funds that closed this year have been on the market for an average of 357 days. The funds that reported, raised 88% 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 three new private placements coming soon.

For illustrative purposes only.

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Chart and data as of June 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.

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