ADISA Annual Conference Talks Artificial Intelligence, Opportunity Zones
ADISA’s recent 2019 Annual Conference & Trade Show here is Las Vegas reported that 12 opportunity zone funds are currently covered by the alternative direct investment platform.
LAS VEGAS—ADISA’s recent 2019 Annual Conference & Trade Show welcomed more than 1,000 educators, regulators and industry leaders to the Cosmopolitan of Las Vegas on October 14-16. At the Industry & Sector Update general session, Mike Kell, senior vice president, business development & program management with AI Insight, reported that, according to AI Insight, in 2018, a record number of programs were added to the alternative direct investment platform and that 70% of those were private placement programs.
According to Kell, currently, AI Insight tracks 155 private placement programs that are actively raising capital with an aggregate target raise of $15.9 billion and an aggregate reported cumulative raise of $7.7 billion or 51.5%.
Additionally, he said, the firm reports that 12 opportunity zone funds are currently covered by the alternative direct investment platform, one energy-focused and 11 real estate-focused, with a total equity raise of $2.1 billion and an aggregate capital raise of $407 million.
During the conference, Taylor Garrett, managing director of Mountain Dell Consulting, also explained that with interest in Section 1031 exchanges remaining high in the current economy, capital raise in Section 1031 exchanges is expected to grow 31.3% with current average yields of 5.73% in October 2019.
Garrett also reported that equity raise in 2019 is expected to be $3.25 billion ($8.92 million per day). “With more broker-dealers entering the space, the involvement of registered investment advisors continues to grow,” he said.
Kevin Gannon, chairman and chief executive officer with Robert A. Stanger, was also at the event, and reported that fundraising for non-traded REITs has increased dramatically and $10 billion is expected to be raised in 2019.
As for NAV REITS, Mike Andrews, head of investment products research and consulting with SS&C Technologies, reported at the event that they are experiencing continued roll out and growth with inflows being dominated by a small number of players in the space.