Private Placement Industry Insights as of February 28, 2021

Thursday, March 18th, 2021 and is filed under AI Insight News

We recently released our February 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. You can also listen to the podcast.

  • Private placement fund formation slowed in February from the prior month. However, we continue to see expansion in real estate and private equity/debt categories. Seventeen new private placements were added to our coverage during the month and 38 have been added this year, putting us ahead in terms of new fund coverage (+15%) and aggregate target raise (+50%).
  • As of March 1st, AI Insight covers 181 private placements currently raising capital, with an aggregate target raise of $18.5 billion and an aggregate reported raise of $8.9 billion or 48% 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 73% of funds and 58% of target raise. Private equity/debt funds represent a relatively small amount of our coverage in terms of the number of funds at only 12%, but tend to be larger and represent 35% of aggregate target raise.
  • In terms of our coverage by general objective, income is the largest component at 53% of funds, while growth and growth & income follow at 28% and 17%, respectively.
  • The average size of the funds currently raising capital is $101.7 million, ranging from $1.9 million for a preferred offering to $3.0 billion for a sector specific private equity/debt fund.
  • 75% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 12% have not yet filed their Form D with the SEC.
  • 14 private placements closed in February and 28 have closed in 2021. Funds that closed this year have been on the market for an average of 412 days. The funds that reported, raised 91% of target. 82% met or exceeded their target and only two funds that closed raised less than half of their target.
  • ON DECK: there are eleven new private placements coming soon.

For illustrative purposes only.

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Chart and data as of February 28, 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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