PIPEs: A Guide to Private Investments in Public Equity - Hardcover

Dresner, Steven

Hardcover

ISBN 10: 1576601404 ISBN 13: 9781576601402

Publisher: Bloomberg Press, 2003

Synopsis

"Pipes, " or Private Investments in Public Equity, are attracting tremendous interest on Wall Street. In recent years, these privatley negotiated transactions have become an attractive financing alternative for companies seeking capital and investors seeking high returns. In PIPE transactions, public companies issue stock and bonds directly (and often discreetly) to large institutional investors, rather than trying to raise capital in the stock and bond markets. PIPEs details how these deals are done, for what reasons, and with what caveats. The book describes deal structures, legal considerations, and terminology specific to investments in private placement transactions. It contains contributions by the foremost practitioners in this rapidly growing area whose participants have been closelipped, until now. PIPEs is a must-read for anyone involved with the equity markets.

About this title

About the Author

Steven Dresner is the publisher of The PIPEs Report, the first publication dedicated to providing news, information, and analysis of private investments in public equity. Formerly Mr. Dresner was a vice president in the investment banking group at Ladenburg Thalmann & Co., a top-performing placement agent for PIPE transactions as ranked by independent sources. He continues to advise both public and private companies on capital raising strategies.

E. Kurt Kim is the founder and chief executive officer of PrivateRaise, L.L.C., the leading research consultancy (awarded a Forbes Best of the Web designation in 2002) for comprehensive market intelligence and analysis pertaining to PIPEs and Rule 144A transactions. Mr. Kim has spent the past decade in various advisory and deal-making capacities within the financial services sector. Mr. Kim holds an M.B.A. from the Wharton School of the University of Pennsylvania.

Reviews

Between the world of private placements, in which large financial institutions make long-term investments in companies, and the world of public stock markets, which are open to all and regulated by the Securities and Exchange Commission, come PIPEs: private investments in public equity. PIPEs allow hedge funds and even wealthy individuals to get much of the liquidity of investing in public securities, while letting the issuer avoid much of the burden of SEC regulations. This backdoor entrance to the public markets has been abused in the past by offshore issuance of unreported stock and structured deals that earned the name "toxic securities" because they generally caused the issuer to fail. Both of these practices have declined, but many people remain suspicious of all PIPE transactions. Dresner and Kim clear some of the lingering confusion in this collection of 12 essays by different authors exploring the legal and financial aspects of PIPEs. Like many technical investment books, the quality of the writing in this book is uneven, and there is quite a bit of repetition and self-promotion. Several of the chapters are excellent, however, including Chapters Five through Seven on the legal aspects of PIPEs and Chapter 12 on due diligence. (This last chapter's author, however, is also one of the worst self-promotion offenders). Other chapters suffer from thin substance and turgid writing. Another problem is the relentlessly upbeat tone that results from all authors earning their livings doing PIPEs, without balance from academics, regulators or PIPE critics. Since there are few other books on the subject, PIPE specialists might find enough useful material here to justify the book's high price, but most people will be happier with Bierman's Private Equity combined with a good text on public securities.
Copyright 2003 Reed Business Information, Inc.

Edition details

• Publisher: Bloomberg Press
• Publication date: 2003
• Language: English
• ISBN 10: 1576601404
• ISBN 13: 9781576601402
• Binding: Hardcover
• Edition number: 1
• Number of pages: 400
• Editor: Kim E. Kurt