The Rise of the PIPE Market

Dai, Na

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The Rise of the PIPE Market

COMPANION TO PRIVATE EQUITY, Douglas J. Cumming, ed., Wiley, 2009

37 Pages Posted: 1 Mar 2009 Last revised: 12 Mar 2009

See all articles by Na Dai

Na Dai

SUNY at Albany - School of Business

Date Written: February 28, 2009

Abstract

The article provides an overview of the emerging PIPE market and existing academic research in this area. I start with an introduction of the PIPE market, such as the definition of PIPE, security structure, and commonly used contract terms. Then I review existing papers examining the cost of PIPEs, returns to PIPE investors, and the role of placement agents in the offering. I also discuss recent SEC enforcement on hedge funds who involved in some PIPE transactions. Finally, I analyze how the current financial crisis has impacted the PIPE market and where this market is heading for.

Keywords: Private Investment in Public Equity

Suggested Citation: Suggested Citation

Dai, Na, The Rise of the PIPE Market (February 28, 2009). COMPANION TO PRIVATE EQUITY, Douglas J. Cumming, ed., Wiley, 2009, Available at SSRN: https://ssrn.com/abstract=1350950