During periods of market volatility, PIPE (private investment in public equity) transactions become an important financing alternative. During the financial crisis, financial institutions and other companies relied on PIPE transactions to raise significant capital. For example, in 2007, approximately $65.7 billion was raised in PIPE transactions, while in 2008, approximately $120.9 billion was raised. The downturn caused by the pandemic is leading to reliance on PIPE transactions as well. For example, PIPE transactions raised $7.0 billion, $3.9 billion and $8.5 billion, in aggregate, in each of March, April and May, respectively. Access a chapter on PIPE transactions from our PLI Press treatise Exempt & Hybrid Securities Offerings treatise here.
Learn more about the treatise here.