PIPEs A Guide to Private Investments in Public Equity

Private investments in public equity (PIPEs) are privately negotiated, equity linked transactions where "the sale is conditional upon a subsequent resale registration statement being filed with and declared effective with the SEC." Due to their specialized nature, usually only institutional and high end investors are involved. It's an appealing way to raise capital, not only because it can be quick but also, depending on the vehicle's structure, less costly—particularly for smaller public companies. Despite being around for some time, this mechanism for raising capital has really only come into its own since the late 1990s. PIPEs are rarely described adequately in the press. This book serves to fill that void as both a guide and reference tool. With chapters written by experts in the field, it documents the history of PIPEs, provides examples of how these issues are structured, describes who invests in them, and offers guidance on the legal requirements as well as recommendations on ways to approach due diligence research for these investments.