Real estate led the way in the first quarter of 2017 as the top volume sector for execution and funding of private placements through RDR. Prime sectors were multi-family acquisitions including value-add opportunities and Class A properties. Senior care facilities and mixed-use residential/retail type developments were also high volume real estate sectors in early 2017.
While the heady days of single family value-add and “rehab and flip” type opportunities are getting more crowded in terms of competition – we still saw healthy volume in operators seeking to raise and deploy capital for these types of offerings. Many of these operators focus on soon to be gentrified areas in urban centers or deploy capital into suburban areas in the path of growth.
Fossil fuel related offerings remained steady in terms of volume and are the second highest grossing volume sector executing private placement offerings. With energy prices stabilizing over the last 16 months we have seen more normalized activity in the energy sector regarding execution of private placement offerings. 52% of fossil fuel offerings were acquiring existing production and 48% were either development or a mix of acquisition and development.
Technology related offerings were third in volume with a wide array of technology based opportunities that executed offerings through RDR in early 2017.
Equity offerings account for approximately 85% of executed offerings and 90%+ of RDR clients are executing under the 506(c) exemption allowing general advertising of the offering. A significant majority of clients are also supporting the offering with the deployment of an RDR Investor Portal website to manage promotion and compliance processes.
The average offering range is between $2,000,000 and $25,000,000 and the average minimum subscription amount is between $10,000 and $25,000 per investor.
Interested in executing a Regulation D offering to raise capital? Call us today to find out what we can do to help you Capitalize Your Vision! (303) 984-4883
Tuesday May 16, 2017
Category: Capital Formation and Regulation D
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