The DI Wire’s Post

Alternative Investment fundraising among largely illiquid offerings totaled approximately $76.6 billion through August led by non-traded business development companies at an estimated $23.7 billion, interval funds at $18.3 billion and other private placements, including infrastructure and private equity offerings, at $12.9 billion, according to investment banking firm Robert A. Stanger & Co., Inc. Non-traded BDC fundraising is up nearly 111% as compared to this time last year while non-traded real estate investment trust fundraising is down 52%, respectively. The industry continues to transform as investors shift their portfolio allocations to private placement offerings, infrastructure, private equity, and higher yielding credit focused investments. Robert A. Stanger & Company, Inc. Blackstone Cliffwater Blue Owl Capital Ares Management Corporation Kohlberg Kravis Roberts & Co. L.p. Apollo Global Management, Inc. FS Investments LaSalle Investment Management HPS Investment Partners, LLC AllianceBernstein Goldman Sachs Randy Sweetman Michael Covello, MBA Michael O'Neil #Stanger #alternativeinvestments #fundraising #businessdevelopmentcompany #BDC #REIT #realestateinvestmenttrust #privateplacement #privateequity #intervalfund #Blackstone #Ares #Cliffwater #BlueOwlCapital #KohlbergKravisRobertsandCo

Alternative investment fundraising totaled approximately $67.3 billion through July, led by non-traded business development companies at an estimated $21 billion, interval funds at $15.7 billion and other private placements, including infrastructure and private equity offerings, at $11.3 billion, according to investment banking firm Robert A. Stanger & Co., Inc. Robert A. Stanger & Company, Inc. Blackstone Cliffwater Blue Owl Capital Ares Management Corporation Kohlberg Kravis Roberts & Co. L.p. Apollo Global Management, Inc. FS Investments LaSalle Investment Management HPS Investment Partners, LLC Goldman Sachs Randy Sweetman Michael Covello, MBA Michael O'Neil #Stanger #RobertAStangerCo #alternativeinvestments #fundraising #redemptionactivity #redemptions #businessdevelopmentcompany #BDC #REIT #realestateinvestmenttrust #intervalfunds #privateequity #DST #Delawarestatutorytrust #NAV #netassetvalue #privateplacement #AllianceBernstein #FirstEagle

Fundraising in alternative investments is recovering and seems to be increasing with debt/credit - focused offerings leading the way. These will continue to be popular, with special emphasis on debt and preferred equity investments being made post-2022 interest rate hikes vs. pre hikes. Investors should look to the future as well and start making equity investments, as commercial real estate has seen a 21% drop in values, peak to trough, and equity investors have a new opportunity to enter the market at an adjusted basis. If the "market" is down 21%, the entry point for distressed assets could be in a discount range of 30-50% from peak values, a very similar dynamic to what we saw in 2008. Considering elevated construction costs, this entry point offers a sizable discount to "as constructed" values, something Caliber tracks to understand fundamental value.

We often advise fundraising clients on the Strategy and Planning of their fundraising campaign before they enter into their target markets and speak to potential institutional investors 🏦 . Let me share 🔊 some insights from our recent projects with fund managers. Fundraising Step 1 – Strategy & Planning – Conceptualisation Building upon our posting last week on “Unleashing the Fundraising Power,” let’s delve into the first stage of fundraising – “Strategy & Planning.” Within Strategy & Planning, the inaugural step is “Conceptualisation.” Conceptualisation Breakdown: Strategy Conceptualisation 📈 : At the core of investment strategies across diverse asset classes lies the conceptualisation of a resilient approach that thrives in every market environment. While resilient investment strategies are often associated with real assets, infrastructure, and real estate, institutional investors, amid heightened uncertainties, seek resilience across all asset classes. When conceptualising an investment strategy, it’s crucial to base decisions on sound market opportunities rather than succumbing to emotions. This is particularly pertinent for impact fund managers who, at times, intertwine personal sentiments with market opportunities, resulting in less successful fundraising endeavours. Key Term Conceptualisation 🔑 : Key terms within alternative investment funds significantly shape fund managers’ investment strategies. All too often, fund managers entrust the intricate details of the private placement memorandum (PPM) or the limited partnership agreement (LPA) 📃 to their respective fund lawyers, overlooking essential aspects. One critical aspect of key term conceptualisation is determining the functioning of these terms. For instance, the calculation of fees, especially for private debt managers who attempt to charge a management fee on committed capital rather than invested capital, can immediately deter potential investors. Fund managers must always ensure alignment of interests and maintain a balanced approach to key term conceptualisation. If you would like to receive a detailed presentation on “Unleashing the Fundraising Power”, please comment “Interested” in the comment section, and I will share the same with you! Stay tuned for enlightening discussions on taking your fundraising endeavours to new heights! 🚀 #FundraisingInsights #Infrastructure #PrivateEquity #Alternatives #PrivateMarkets #RealAssets #RealEstate #Fundraising #FirstTimeFund #InstitutionalInvestors #VentureCapital #PrivateDebt #Challenges #GeneralPartner #LimitedPartner #GP #LP #AIFM DC Placement Advisors Nina Dohr-Pawlowitz Angela Kropp Predrag Dukic Karan Patodia, CFA, CAIA, FRM, SCR Liji Babu Harsha Bharuka Printo Mathai advinda Investor Cloud GmbH

We often advise fundraising clients on the Strategy and Planning of their fundraising campaign before they enter into their target markets and speak to potential institutional investors 🏦 . Let me share 🔊 some insights from our recent projects with fund managers. Fundraising Step 1 – Strategy & Planning – Conceptualisation Building upon our posting last week on “Unleashing the Fundraising Power,” let’s delve into the first stage of fundraising – “Strategy & Planning.” Within Strategy & Planning, the inaugural step is “Conceptualisation.” Conceptualisation Breakdown: Strategy Conceptualisation 📈 : At the core of investment strategies across diverse asset classes lies the conceptualisation of a resilient approach that thrives in every market environment. While resilient investment strategies are often associated with real assets, infrastructure, and real estate, institutional investors, amid heightened uncertainties, seek resilience across all asset classes. When conceptualising an investment strategy, it’s crucial to base decisions on sound market opportunities rather than succumbing to emotions. This is particularly pertinent for impact fund managers who, at times, intertwine personal sentiments with market opportunities, resulting in less successful fundraising endeavours. Key Term Conceptualisation 🔑 : Key terms within alternative investment funds significantly shape fund managers’ investment strategies. All too often, fund managers entrust the intricate details of the private placement memorandum (PPM) or the limited partnership agreement (LPA) 📃 to their respective fund lawyers, overlooking essential aspects. One critical aspect of key term conceptualisation is determining the functioning of these terms. For instance, the calculation of fees, especially for private debt managers who attempt to charge a management fee on committed capital rather than invested capital, can immediately deter potential investors. Fund managers must always ensure alignment of interests and maintain a balanced approach to key term conceptualisation. If you would like to receive a detailed presentation on “Unleashing the Fundraising Power”, please comment “Interested” in the comment section, and I will share the same with you! Stay tuned for enlightening discussions on taking your fundraising endeavours to new heights! 🚀 #FundraisingInsights #Infrastructure #PrivateEquity #Alternatives #PrivateMarkets #RealAssets #RealEstate #Fundraising #FirstTimeFund #InstitutionalInvestors #VentureCapital #PrivateDebt #Challenges #GeneralPartner #LimitedPartner #GP #LP #AIFM DC Placement Advisors Nina Dohr-Pawlowitz Angela Kropp Predrag Dukic Karan Patodia, CFA, CAIA, FRM, SCR Liji Babu Harsha Bharuka Printo Mathai advinda Investor Cloud GmbH

In the fiscal year 2023, private equity fundraising sustained a second consecutive annual decline, wherein the aggregate capital secured in conclusive closures diminished to $785 billion—a reduction of approximately 5% compared to the preceding year. The count of funds achieving final closure also descended to its lowest point since 2019, culminating in the conclusion of 1,757 funds. This contraction is ascribed to an increasingly arduous fundraising milieu, influenced by a more rigorous deal market. In the upcoming fiscal year of 2024, limited partners (LPs) will meticulously evaluate general partners' (GPs) efficacy, focusing not merely on commitments made but also on the demonstrated ability to realize substantive returns through successful exits.

“Investors are cherry-picking what they like and what they think will do well out of this repricing, and sector specialists will be the beneficiaries of that,” says James Jacobs head of real assets advisory at capital advisor Lazard. “It’s not that the mega-funds don’t play in those sectors, but investors might want to just augment their exposure.” Among sector-specific funds closed in 2023, 73% reached or exceeded their target size, compared with 64% of diversified funds. It seems there is clear appetite for sector-specific exposure and in terms of net lease investments we continue to see new sector-specific vehicles driving transactions. Source: PERE #netlease #CRE #fundraising

In a challenging and bifurcated fundraising market, demonstrable ability to enact earning enhancing operational improvements is paramount to success, Partners Capital’s Head of EMEA, Euan Finlay, highlighted in PitchBook’s 2024 Fundraising Forecast. Euan also predicts continued interest in dedicated energy transition private equity funds, particularly industrial decarbonisation buyout funds and infrastructure players with PE-like approaches. Read the full article here: https://lnkd.in/ect5htKg   #fundraising #energytransition #decarbonization 

In 2023, European private equity witnessed both significant successes and challenges. Industry experts give their opinions here on what the fundraising forecast will be for 2024. To read the article in full, visit here: https://bit.ly/3Slic8V #privateequityfunds #fundraising #capital #financing