Investing in PIPEs

These are interesting times for Private Investment in Public Equity (PIPE). Leveraging proven management skills and demonstrable underlying company value to effectively raise capital from private investors has become a matter of increasing importance to public companies. Meanwhile, many private investors are also seeking to weigh in more liquid, low-risk public equity allocations into their portfolios – provided that they can secure more significant positions of such equity at a price that is fixed and discounted to the otherwise publicly traded share price. By investing in PIPEs (http://www.placementbase.com), private investors can acquire common or preferred stock at a set price (traditional PIPEs) or purchase convertible debt (structured PIPEs). Most PIPE investments are issued by small to medium sized public companies that seek efficient equity or debt financing.

PIPE investments have been around for more than 10 years, but it is only in the last few years that the PIPE market has seen higher volumes of issuers. Increased market size and diversification across industries has led to greater transparency – news sources, information distribution companies, conferences and databases keep watch on PIPE investment opportunities, participants, structures and processes. This makes investing in PIPEs a more accessible and investor-friendly pursuit than ever before.

PIPE investments are usually opened up to a smaller group of private investors during a limited time period. A good way to stay in the know of these sought-after offerings is to sign up with a credible information distribution company that will issue regular bulletins of relevant opportunities and proposals. Services such as those offered by Placementbase.com deliver ongoing information about private placements in Europe, without any sign up fee or ongoing membership charges. As an investor, you can use your free membership to identify, review and participate in a variety of credible companies and financial structures – valuable opportunities that may otherwise not have been on your radar.

Any investing in PIPEs that investors pursue will always be made directly with the issuing company. Issuers that access the PIPE market come from a broad range of industries, including energy, technology or financial sectors. Discounts to the public share price can be anywhere from 10-25%, and since these investments are offered at a fixed price some investors see an opportunity to buy considerable positions.

Article Source: http://www.articledirectorylive.com

Placementbase.com is an information distribution service for professional investors in Europe www.placementbase.com”>investing in PIPEs and private placements. Serving as an information distribution service for private placement offerings in Europe

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