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    PIPEs Strategy

    PIPE Investments: A Bridge Between Public and Private Markets

    Understanding Private Investment in Public Equity as a capital markets tool

    Brandan Kotar · March 1, 2026

    Capital Markets Strategy

    PIPEs: Fast Capital for Growth

    Private Investment in Public Equity (PIPE) transactions allow accredited investors to purchase stock directly from public companies—often at a discount—providing issuers with faster, more flexible financing than traditional secondary offerings.

    $26B+

    PIPE transaction volume in 2023 across U.S. markets

    30–60

    Days to close vs. 3–6 months for traditional offerings

    5–15%

    Typical discount to market price for investors

    800+

    PIPE transactions completed annually in the U.S.

    Sources: PlacementTracker (2024); PrivateRaise (2023)

    Financing Comparison

    PIPE vs. Traditional Secondary Offerings

    Understanding the trade-offs between speed, cost, and market impact.

    PIPE Transaction

    • Timeline: 30–60 days
    • Disclosure: Limited until closing
    • Pricing: Negotiated discount (5–15%)
    • Investor Base: Select accredited/institutional
    • Regulatory Burden: Lower (Reg D exempt)
    • Market Impact: Minimal pre-announcement

    Follow-On Offering

    • Timeline: 3–6 months
    • Disclosure: Full prospectus required
    • Pricing: Market price (underwriter spread)
    • Investor Base: Broad public market
    • Regulatory Burden: Higher (SEC registration)
    • Market Impact: Often depresses stock price

    Key Considerations

    What Investors Should Know About PIPEs

    Common questions and strategic insights for evaluating PIPE opportunities.

    PIPEs represent a middle ground between public and private markets—offering public company exposure with private placement economics.

    Sources: SEC PIPE Guidance; Morrison & Foerster PIPE Primer (2023)

    In a market where timing is everything, PIPEs give companies capital when they need it—and investors access on favorable terms.

    The best PIPE opportunities combine speed, structure, and alignment of interests.

    Understanding the mechanics and risks of PIPE transactions is essential for investors seeking diversified exposure to public equities through private channels.

    This material is provided for educational and informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security or investment product. The information presented is general in nature and is not intended to be relied upon as a primary basis for investment decisions. Advisors should evaluate all investments independently and in the context of their clients' objectives, risk tolerance, liquidity needs, and suitability requirements. Charts, figures, and data visualizations are based on publicly available information, industry research, and reasonable estimates. Certain data points are illustrative or derived from aggregated sources and should not be interpreted as precise measurements or forecasts. Past trends do not guarantee future results. All investments involve risk, including the potential loss of principal. Private market investments may involve additional risks, including limited liquidity, valuation uncertainty, and longer investment horizons, and may not be suitable for all investors.

    Kelly Park Investment LLC (CRD# 299882) is an SEC-registered investment adviser.

    This material is educational and for informational purposes only. It does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment product, and it is not investment, legal, or tax advice.

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