RT Journal Article
SR Electronic
T1 Playing the PIPEs
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 66
OP 73
DO 10.3905/jpe.2001.320001
VO 5
IS 1
A1 Mark J.P Anson
YR 2001
UL https://pm-research.com/content/5/1/66.abstract
AB A popular new form of equity financing for new and existing companies is the PIPE, or private investment in public entities. Investors outside of the normal public arena–including venture capitalists, leveraged buyout firms, hedge and mutual funds–bargain directly with a public company to acquire a private equity position. Transactions, often denominated in convertible, preferred, and perhaps unregistered shares, may be priced at a discount or a premium to the current market value. While the benefits are many for both the investors and the company, the risks can be extreme.