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From Precy Dumlao, Opalesque Asia:

The Private Investment in Public Equity or PIPE funds generated an aggregate $15.1bn in inflows from 369 private placements last year, the most number of transactions the PIPE market has recorded since 2007 and the largest dollar volume since 2008.

Indeed industry observers believe PIPE funds will continue to grow up to 2012 as many companies are holding record levels of cash and are always on the lookout for acquisition opportunities. The high valuations currently enjoyed by growth companies are also favorable for PIPEs as these firms will fund their acquisitions via PIPE funds.

A new study made by research think tank IncreMental Advantage, PIPEs ebbed in 2008 at the height of the global financial meltdown. 2009 was also not a good year for PIPEs as that was the slowest year recorded for PIPE deals since 2002.

However, the fourth quarter of 2010 proved to be one of the turning points for the industry as the PIPE market saw a boom in Q4. Last year, the figures showed that placements totaled 1,174, the most since 2007.

Part of PIPEs boom in the last quarter of 2010 can be attributed to hedge funds which flowed in a total of $5bn into the industry during the quarter. Brookfield Asset Management invested $2.3b......................

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