Private Investment in Public Equity (PIPE)

Corporate Finance Financial Terms Dictionary

Contents

Private equity investment (PIPE) is when an institutional or accredited investor buys shares directly from a public company at below market value.

Because they have less stringent regulatory requirements than public offerings, PIPEs save companies time and money and raise funds faster.
The discounted price of PIPE shares means less capital for the company, and issuing them effectively dilutes current shareholder equity.