Private investment in public equity (“PIPE”) transactions completed in 2020* have raised over $53.0 billion, in aggregate, in 1055 transactions. This is the largest sum of capital raised in PIPE transactions since 2008. While industrials companies (chemicals, metals, mining and paper-focused companies) lead the market by number of PIPEs completed, the 323 deals in this sector raised only $2.8 billion in aggregate. By comparison, healthcare and life sciences companies completed 254 PIPEs and raised $15.2 billion in aggregate.
As more SPACs go public and seek out targets, SPACs have also relied on PIPE transactions in order to raise capital in connection with their initial business combinations. In 2020, SPACs have raised $1.5 billion in 168 PIPE transactions. As the year comes to a close, we expect to see more companies, including SPACs, complete PIPE transactions in order to raise capital amidst market volatility relating to the US Presidential Election, the COVID-19 pandemic, and other geopolitical factors.
*2020 data through October 31, 2020
Data source: PrivateRaise