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Kirsten Bischoff, Opalesque New York: According to Sagient Research $83bln in PIPE transactions (Private investments in Public Equity) was completed in 2007 (up from $30bln in 2006) and in 2008 PIPEs are on track to surpass that number, as midyear they currently stand at $63bln. Particularly in the US, liquidity constraints have opened many opportunities for hedge funds specializing in PIPE deals and concurrently provide a much needed fund raising mechanism for small and mid cap firms.

US PIPE transactions providing funds in illiquid markets PIPE deals are "One of the primary ways that public companies (especially the smaller ones) in the US are funding their operations." Jack Concannon, partner at law firm Bingham McCutchen commented to Opalesque. "As the turmoil in the markets and big brokerage houses persists, the underwritten deals that used to get done (the $15-$30m deals) cannot get done on an underwritten basis right now, so companies are finding it necessary to use these PIPEs to raise funds." Amongst the top 25 largest PIPE investors this year (also according to Sagient Research), are asset management firms such as Corsair Capital Management Inc, Tosca, Canyon Capital Advisors, Credit Suisse Asset Management and Och-Ziff Capital Management Group.

Global PIPE transactions In a recent publication of Opalesque's A Square (......................

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