Private Investment in Public Equity - PIPE
- Private Investment in Public Equity - PIPE
- A private investment firm's, mutual fund's or other qualified investors' purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs - traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares).
This financing technique is popular due to the relative efficiency in time and cost of PIPEs, compared to more traditional forms of financing such as secondary offerings. In a PIPE offering there are less regulatory issues with the SEC and there is also no need for an expensive roadshow, lowering both the costs and time it takes to receive capital. PIPEs are great for small- to medium-sized public companies, which have a hard time accessing more traditional forms of equity financing.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Private investment in public equity — This article is about Private Investments in Public Equity or PIPEs. For investments in private equity through publicly traded vehicles, see Publicly traded private equity. A private investment in public equity, often called a PIPE deal, involves … Wikipedia
Private investment in public equity — Le Private investment in public equity (PIPE) est une augmentation de capital (actions, obligations...) réservée à certains fonds de capital investissement au lieu d un Appel public à l épargne. Ces opérations sont particulièrement appréciées des … Wikipédia en Français
Private Investment in Public Equity — ( PIPE) Occurs when private investors take a sizable investment in publicly traded corporations. This usually occurs when equity valuations have fallen and the company is looking for new sources of capital. Bloomberg Financial Dictionary … Financial and business terms
Pipe — may refer to: * Pipe (material), a hollow cylinder following certain dimension rules ** Pipe for transporting water (Water pipe), chemical, gas and casing pipe for cables * Pipe (smoking) * Pipe (character) or vertical bar, the ASCII character |… … Wikipedia
PIPE — can refer to *PIPE (explosive) *PIPE Networks *Private Investment in Public Equity (PIPE) * Physical Interface for PCI Express (PIPE)For other meanings, see also pipe … Wikipedia
Equity co-investment — An equity co investment (or co investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction.… … Wikipedia
Private equity in the 21st century — relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub industries, leveraged buyouts and venture capital experienced growth along parallel although… … Wikipedia
Private equity in the 1990s — relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub industries, leveraged buyouts and venture capital experienced growth along parallel although… … Wikipedia
PIPE transaction — (PIPE) USA PIPE stands for private investment in public equity. A PIPE transaction is a transaction in which a public company issues equity securities in a private placement to investors (usually at a discount to the market price of its common… … Law dictionary
PIPE — transaction (PIPE) USA PIPE stands for private investment in public equity. A PIPE transaction is a transaction in which a public company issues equity securities in a private placement to investors (usually at a discount to the market price of… … Law dictionary
