What Is a PIPE?

Based in Jacksonville, Florida, Blake Wilson is an accomplished CEO with more than 30 years of business experience. In 2020, Blake Wilson founded Monarch Capital as an investment bank dedicated to creating corporate finance solutions. Its services include private equity financing, strategic advisory services, and PIPEs.

PIPE, or private investment in public equity, is a buying method utilized by accredited investors such as investment firms. The method entails buying stocks from a public company at a reduced price below market value. PIPEs help public companies raise funds quickly with less regulations by the Securities and Exchange Commissions (SEC).

PIPEs can be used to secure funds for acquisitions or to obtain working capital for daily operations. Unlike initial public offerings (IPO), PIPEs are conducted in a private placement and do not require prior registration with the SEC. PIPEs are also quicker to process, with funds becoming available within a few weeks compared to the months it takes for secondary stock offerings.