Private Placement Insights as of September 30, 2022

Thursday, October 13th, 2022 and is filed under AI Insight News

We recently released our September 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.

  • 22 new private placements were added to our coverage in September, slower than prior months primarily due to fewer 1031 exchanges added. However, we have added more funds in all categories other than energy and hedge funds this year compared to last, although activity is ramping up in the hedge fund category with new funds coming soon. Real estate funds still lead in terms of funds added and raise targets. Non-tax focused real estate LLCs, LPs, and private REITs are up 96% from a year ago and are seeking to raise 489% more capital. 1031 exchange additions have slowed recently although they are still up year-over-year, while we continue to see slow but steady activity in Opportunity Zone fund additions.
  • Overall, on a year-over-year basis, we have added more funds than last year (+26%), and these funds are targeting a larger amount of capital (+101%). We have also added more than 30 new sponsor relationships across the categories. The increase in volume is indicative of the continued growth in alternative investment options for high-net-worth investors, as well as a focus on education within the space.
  • As of October 1st, AI Insight covers 255 private placements currently raising capital, with an aggregate target raise of $30.9 billion and an aggregate reported raise of $10.0 billion or 32% of target.
  • Real estate-related funds, including 1031s, Opportunity Zone funds, and non-1031 real estate LLCs, LPs, and private REITs represent the largest component of our private placement coverage at 71% of funds and 72% of target raise. Private equity/debt funds represent 15% of funds and 17% of target raise, although this does include 12 private market feeder funds that do not specify an offering target.
  • In terms of coverage by general objective, income is the largest component at 57% of funds, while growth and growth & income follow at 25% and 18%, respectively.
  • The average size of funds currently raising capital is $121.6 million, ranging from $3.9 million for a specified Opportunity Zone fund to $2.5 billion for a private REIT focused on single-family housing.
  • 72% of private placements we cover use the 506(b) exemption, 18% use 506(c) and 10% have not yet filed their Form D with the SEC.
  • 27 private placements closed to new investors in September and 203 have closed year-to-date. Funds that closed this year have been on the market for an average of 275 days and the 188 funds reporting raised 89% of target on average.

 

For illustrative purposes only. Past performance is not indicative of future results.

Access the full Private Placements report and other hard-to-find alts data

AI Insight’s Industry Reporting capabilities help you review alternative investment trends and historical market data for Private Placements, Non-Traded REITs, Non-Traded BDCs and Interval Funds. Receive up to 22 extensive reports per year to help broaden your alternative investment reviews.

Log in or subscribe to AI Insight to further research, sort, compare, and analyze all of the private and public funds in our coverage universe. See who’s new in the industry and what trends are impacting the alts space.

_________________________________

Chart and data as of September, 2022, 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.

On a subscription basis, AI Insight provides informational resources and training to financial professionals regarding alternative investment products and offerings. AI Insight is not affiliated with any issuer of such investments or associated in any manner with any offer or sale of such investments. The information above does not constitute an offer to sell any securities or represent an express or implied opinion on or endorsement of any specific alternative investment opportunity, offering or issuer. This report may not be shared, reproduced, duplicated, copied, sold, traded, resold or exploited for any purpose.

This material is confidential and the property of iCapital, and may not be shared with any party other than the intended recipient or his or her professional advisors. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital. This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital Network”). Past performance is not indicative of future results. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed, and iCapital Network assumes no liability for the information provided.

Products offered by iCapital Network are typically private placements that are sold only to qualified clients of iCapital Network through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.

Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. (d/b/a iCapital Network). These registrations and memberships in no way imply that the SEC, FINRA or SIPC have endorsed the entities, products or services discussed herein. iCapital and iCapital Network are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.

© 2022 Institutional Capital Network, Inc. All Rights Reserved.