Private Placement Industry Insights as of March 31, 2024

Tuesday, April 16th, 2024 and is filed under AI Insight News

We recently released our March Private Placement Insights report. See the highlights from the report below, or if you are an AI Insight by iCapital subscriber, log in now to see the entire report.

  • Twenty-one new private placements were added to iCapital’s investment product training database in March, marking a significant uptick compared to the previous month, primarily due to heightened activity in the real estate categories. Overall, we have added 15% more funds this year, with these funds aiming to raise 38% more capital. 1031 exchanges and the non-tax focused funds saw robust activity in March, while Opportunity Zone funds target an aggregated 142% more capital compared to the previous year. However, hedge fund and private equity activity remained stagnant, with fewer funds added in both categories.
  • As of April 1, AI Insight by iCapital (“the platform”) covers 286 private placements currently in the market, targeting an aggregate raise of $53.1 billion and an aggregate reported raise of $35.9 billion or 68% of target.
  • The average size of funds currently on the platform is $187 million. Funds range in size from $3.5 million for a specified industrial 1031 exchange to a recently increased $15 billion AUM diversified private equity and debt fund.
  • Real estate-related funds dominate our coverage, representing 73% of the total number of funds and 48% of aggregate target raise. However, private equity’s share of the target raise is likely much higher as there are 13 funds that are part of institutional funds without specific dollar targets.
  • Income remains the largest investment objective category at 53% of funds, while growth and growth and income follow at 24% and 21%, respectively.
  • In terms of regulatory exemptions, 60% of private placements on the platform utilize the 506(b) exemption, while 33% use 506(c) and 7% have not yet filed their Form D with the SEC.
  • Nine private placements closed to new investors in March and 40 have closed year-to-date. On average, these funds spent 378 days on the platform, with 24 of the funds reporting raise at 93% of target, on average.

Source: AI Insight by iCapital, as of March 31, 2024. Based on programs activated on the AI Insight platform as of this date.

For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed and loss of principal may occur.

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Source: AI Insight by iCapital, as of March 31, 2024. 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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