Private Placement Market Update
September 1, 2015
Real estate funding for acquisitions and projects are the top volume sector for offering execution as we enter the fourth quarter of the year. Blind pool real estate investment fund offerings are on pace to exceed last years aggregate transactions. Specific asset purchase and development project funding are a close second in volume within the sector. We are still seeing a strong focus on multi-family and residential sectors in or near growing markets and metropolitan areas.
Energy offerings are second for sector activity. The volatility in oil prices has created opportunities for operators to capitalize and acquire projects and leases opportunistically. The increase last quarter in energy offerings may be indicative of operators sensing the bottom is near for oil prices and the time is opportune to begin acquisitions.
Technology related offerings are third in transactional volume and are also maintaining a higher pace of execution than last year.
Preferred equity and convertible preferred equity issues top the list for most executed transaction structure with non-convertible secured debt offerings third and common equity fourth most prevalent in terms of offered securities structure and terms.
The Regulation D 506(c) exemption continues to dominate all other programs with 80% of RDR clients choosing the 506(c) program. The ability to execute a public offering of securities under 506(c) has dramatically impacted the success of executed offerings with issuers now able to gain maximum exposure on market.
Tuesday September 01, 2015
Category: Corporate News
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