Thu, May 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
A SQUARE

Expertise on Private Investments in Public Equities (PIPEs)

Tuesday, March 20, 2007
Mitch Hull separates the facts from the fiction in this promising space.

A SQUARE :: 20Mar07 Expertise on Private Investments in Public Equities (PIPEs)
Category PIPEs
Faculty Mitch Hull
Expertise Private investments in public equities (PIPES)
Author Sona Blessing
Faculty Name
Mitch Hull has over a decade of experience, is founder of Hull Capital Management, LLC, and shares his insights on private investments in public equities (PIPEs)...


“In a PIPE offering there are less regulatory issues with the SEC” ... then why is investing in them perceived with such notoriety?


The “notoriety” in a PIPE transaction is really a function of historical biases created in the early days of
PIPE investing. In the mid to late 90’s PIPEs, known at the time as Reg. D Private Placements, were new
to the capital markets and the dominant transaction structure was the floorless floating convertible bond.


It was embraced by a vast majority (at present it constitutes 5% of the market). This structure is known more pejoratively as the “toxic convertible” or “death spiral” as a number of dot com companies that had used this structure experienced negative outcomes when the Internet “bubble burst”. Many of those issuers’business models proved to be failures – and some erroneously continue to blame the PIPE structure for the same.

Today, very few transactions are completed with floating conversion features.

Download this research The many benefits of an A SQUARE subscription Recommend to a friend

<< A SQUARE archive sorted by date    << A SQUARE archive sorted by category

 Article link
More research related to PIPEs

[04Jun09] [PIPEs] Invests directly through private placements in growth companies ...
As active private placement investors in the industry have established a robust deal flow network

Download

[21May09] [Warrants/PIPEs] A fund that holds warrants (issued in PIPE deals)
Steadily increasing size of deals indicate a demand for PIPE transactions

Download

[07May08] [PIPEs] PIPE Opportunities in China
Geography is still a challenge with China but it is mitigated in part because the companies trade in the US.

Download

[24Oct07] [PIPEs] Private investments in public equities FOF
With SEC regulatory changes, PIPE deal flow will increase - the strategy is increasingly being deployed outside the US, particularly in Europe and Asia.

Download

[02May07] [PIPEs] PipeLine Investors, LP
In 2005 Mar Hedge ranked PipeLine Investors in the Top 10 Performing Risk Adjusted Funds of Funds in the U.S.

Download
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year