The private investment in public equity (PIPE) transaction has proven to be a popular financing tool in volatile markets. For the first five months of 2020, $29.3 billion has been raised through PIPE transactions, primarily in the healthcare and technology sectors.
Data source: PrivateRaise
Comparing timeframes (January 1 through June 9) year-over-year since 2015, there
During the first quarter of 2020, venture funding levels in the global healthcare and life sciences sector has increased 4% by dollars raised, quarter-over-quarter, despite the turbulent COVID-19 environment. According to a recent CB Insights report, healthcare companies raised $14.6 billion this past quarter in 1,156 deals. Deal volume decreased 6% quarter-over-quarter. The inverse
Tech companies at all growth stages are facing capital raising and operating challenges brought about by the global COVID-19 pandemic. A recent CB Insights client briefing explored these novel business pressures.
To add some perspective, an analysis of earnings calls provided by CB Insights showed that the mentions of “layoffs,” “furloughs” and “hiring freezes” in
For many issuers, a liability management transaction may be part of an overall funding and liquidity management strategy. For others, an exchange offer, consent solicitation or tender offer may be undertaken in connection with a restructuring or recapitalization. For financial institutions or insurance companies, a liability management transaction may serve to address regulatory capital considerations.
PIPE transactions remain an important capital-raising alternative, especially during periods of market volatility. Whether a public company is seeking to raise additional capital from sector or financial investors, effect a recapitalization or restructuring, or facilitate a liquidity opportunity for an existing stockholder, a PIPE transaction may be the most efficient approach.
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Approximately $126 billion in private debt was raised globally in 2019, according to PitchBook Data’s Global Private Debt Report. The private debt markets have experienced a surge in activity and volume following the Global Financial Crisis. Increased competition among lenders raise concerns about the increase in covenant-lite facilities as bargaining power shifts to issuers.
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