PIPEs Emerge as Clever Fundraising Tool in Dire Looking Markets

Private investments in public equity are growing in popularity as rocky markets force boardrooms to get increasingly creative in order to raise the cash they need.

A year of volatile markets has limited the ability of US-listed firms to do traditional follow-on offerings, opening the door to so-called PIPEs as an alternative. The latest include a $200 million raise by Legend Biotech Corp., a $250 million sale by Enviva Inc. and a $10 million deal by Stronghold Digital Mining Inc.

The strategy is spreading after a significant reduction in US public capital markets activity that started last ...