For more articles like this, visit
IFLR’s coronavirus resource hub.
Volumes of private investments in public equities –
or PIPE – transactions have seen a significant spike
in the weeks and months since the Covid-19 crisis took hold of
the economy. The types of investors entering into these
transactions is also evolving.
By the end of April 2019, 304 PIPEs had raised $10.8 billion
for corporates in the US markets. Over the same time period
this year, there were 358 deals raising $20.7 billion: a
significant number with echoes of the 1,206 PIPE transactions
At the beginning of March, when the volatility really
started, corporates began to question how they were going to
stay afloat in such uncertain times. "As March progressed it
was more around lines of, 'ok what do I do, how do I raise
capital?'," said Angus Whelchel, global head of private capital
markets at Barclays. "Corporates...