Volatility and a lack of liquidity in Aim-listed stocks has sparked growing interest in
UK Pipes [private investment in public equity]. But deals today
may not be indicative of a long-term trend.
Private equity firms taking strategic stakes in
public companies has been a feature of US, and to some extent
Asian, markets for some time. In Europe, however, it has been
more cyclical, and it’s approaching a new
"There were a number of Pipes in the mid-2000s,
where hedge funds, as well as mainstream investors and private
equity houses were getting involved in a private-approach to
public companies. That died away, but it is beginning to come
back a bit now," said Anthony Dalwood, an advisor at LDC.
Pipe is a broad concept that encompasses a range of
private-style investments made by institutional investors in
listed companies. At its most basic, it involves a private