Summary of PIPEs

A Guide to Private Investments in Public Equity

Steven Dresner and E. Kurt Kim

Bloomberg Press, 2003 more...

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Do you want to smoke PIPEs — Private Investment in Public Equity — or are the risks to your fiscal health too high?

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8 Applicability

9 Innovation

7 Style

Recommendation

This is an excellent and comprehensive introduction to PIPEs. The acronym stands for Private Investment in Public Equity, and this includes not only common stock but warrants and other permutations of equity. Companies often issue PIPEs when they need capital but when market conditions make it imprudent to raise funds through a public offering. Most PIPEs investors are sophisticated institutions, and hedge funds are probably the most active participants in the market. PIPEs are a high-risk investment with abundant legal, market, regulatory and other complexities. This book neither attempts to sell PIPEs nor to discourage people from buying them. While somewhat repetitive, it is reasonably objective and reasonably thorough. getAbstract.com strongly recommends it to professional investors.

In this summary, you will learn

How the market for PIPEs works and who the major participants are;
What the primary risks are;
How legislation and regulation are changing the market; and
Whether investing in PIPEs makes sense for you.

Summary

PIPE Basics
The acronym "PIPE" stands for Private Investment in Public Equity. Each word matters: Private - PIPEs are negotiated transactions between a public company and either one private investor or a few private investors. SEC regulations permit PIPEs through certain, clearly...

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About the Authors

Steven Dresner is president of DealFlow Media, Inc., and publisher of the PIPEs Report. He was formerly vice president of the Investment Banking group at Ladenburg Thalmann & Co. E. Kurt Kimis founder, president and chief executive officer of PrivateRaise, L.L.C., a research firm specializing in information about private placements and Rule 144A transactions.