PIPE transactions were created to be an effective capital raising approach for public companies when there were few, if any, other satisfactory financing alternatives. While there are now a number of other confidentially marketed securities offering methodologies, for the reasons discussed in this article, PIPE transactions may be the most efficient or only alternative for many issuers. As noted in prior posts, many public companies are finding that, in this environment, capital injections by private equity and other financial sponsors are best structured as PIPE transactions. These transactions raise a number of considerations, which are discussed in more detail in this article.
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