The Rise of the PIPE Market
State University of New York at Albany - School of Business & Center for Institutional Investment Management
February 28, 2009
COMPANION TO PRIVATE EQUITY, Douglas J. Cumming, ed., Wiley, 2009
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.
Number of Pages in PDF File: 37
Keywords: Private Investment in Public Equity
Date posted: March 1, 2009 ; Last revised: March 12, 2009