PIPEs: A Guide to Private Investments in Public Equity: Revised and Updated Edition

CHAPTER 1

Overview An Emerging Market

RICHARD E. GORMLEY^a

Cowen and Company, LLC

 

 

 

 

The emergence of PIPEs, or Private Investments in Public Equity, and RDs, or Registered Direct offerings, during the last five years has altered the capital markets and corporate finance landscape for small and midsize public companies. PIPEs and RDs have become the preferred financing source for many issuers seeking expeditious access to competitively priced capital from institutional investors. The growing participation of varied investors in this market likewise demonstrates the appeal of PIPEs and RDs as an attractive investment asset class. This chapter provides a brief overview of the emerging PIPE and RD markets.

A PIPE transaction is commonly considered ...