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

Na Dai

State University of New York at Albany - School of Business & Center for Institutional Investment Management

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

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

Na Dai (Contact Author)

State University of New York at Albany - School of Business & Center for Institutional Investment Management ( email )

1400 Washington Ave.
Albany, NY 12222
United States

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