ANALYSIS: After 20 Years, PIPEs Continue Bridging Capital Needs

PIPEs, or private investment in public equity, are a means of financing that has adapted to changes in regulation and market conditions, remaining a vital tool for raising capital for some public companies.

PIPE financing has ebbed and flowed in popularity since its inception 20 years ago but continues to be used because it fills a need. PIPEs, such as capital invested by a hedge fund or private equity in a publicly traded company, can sometimes make the difference in whether a company continues as a going concern. This financing has its detractors, though—notably the SEC, which has scrutinized reporting ...