Private Placement Industry Insights as of October 31, 2021

Thursday, November 11th, 2021 and is filed under Industry Reporting

We recently released our October 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 weakness in energy and some of the real estate categories, October was another strong month for funds added to our coverage, driven primarily by additions to the tax strategies including 1031 exchanges and conservation funds. On a year-to-date basis, private equity/debt leads the way, followed by hedge funds and 1031s.
• 227 new funds have been added in 2021 making this a strong year and putting us well ahead in terms of new fund coverage (+54%) and aggregate target raise (+43%).
• As of November 1st, AI Insight covers 222 private placements currently raising capital, with an aggregate target raise of $19.3 billion and an aggregate reported raise of $8.3 billion or 43% of target.
• Real estate-related funds, including 1031s, Opportunity Zones, and non-1031 real estate LLCs/LPs and private REITs represent the largest component of our private placement coverage at 66% 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 16% but represents 22% 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 55% of funds, while growth and growth & income follow at 29% and 16%, respectively.
• The average size of the funds currently raising capital is $95.4 million, ranging from $5.0 million for a specified real estate fund to $1.1 billion for a private equity tender offer fund.
• 80% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 8% have not yet filed their Form D with the SEC.
• 21 private placements closed to new investors in September and 174 have closed in 2021. Funds that closed this year have been on the market for an average of 315 days. The funds that reported raised 93% of target. 81% met or exceeded their target and only seven funds that missed their target reported that they raised less than half of the target.
• ON DECK: there are 13 new private funds coming soon.

 

 

For illustrative purposes only.

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Chart and data as of October 31, 2021, based on programs activated on the AI Insight platform as of this date.

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