Private Investment in Public Entity (PIPE) is a process in which a private investment group such as a hedge fund invests in the stock of a public company. The two most common forms of a PIPE are traditional and structured. In a traditional PIPE the investors receive common or preferred stock. In a structured PIPE they are issued convertible debt. This type of financing has become popular because of the speed in which it can be executed in comparison to a secondary offering. There is also less regulatory fillings associated with a PIPE. Small and mid sized public companies are the primary users of this type of financing. Please feel free to contact us if you would like to discuss PIPE financing.