Market Trends 2019/20: PIPEs

Summary

This article explores trends in the private investments in public equity (PIPE) market in 2019 and the market outlook for 2020. The market for PIPEs in the United States saw an increase in both the number of deals and total dollar volume of deals that closed in 2019 compared to 2018. According to PlacementTracker, the leading source for data and analysis to institutions in the PIPE and private placement markets, in 2019, there were 1,033 PIPE transactions with a total dollar volume of $48.8 billion, as compared to 875 PIPE transactions with total dollar volume of $44.6 billion in 2018. This represents an 18% increase in number of deals and a 10% increase in dollar volume from 2018. How Covid-19 impacts issuers in 2020 will be a fluid situation.