NEW YORK, July 22, 2015 /PRNewswire/ -- The PIPEs Report, a service of The Deal that covers the small-cap equity financing market, has issued a quarterly report showing that the dollars invested and volume of transactions in the small-cap equity financing market increased during the second quarter of 2015. The number of PIPE transactions rose by 28.8% in the second quarter when compared to the same quarter last year, while the dollars invested in those deals tripled during the same time period.
"The PIPE market accelerated in the second quarter as corporate investors joined with traditional hedge fund buyers to put more than $35 billion into companies ranging from startups to established corporations," said Paul Springer, senior writer for The PIPEs Report. "2015 could be the best for the PIPEs market since 2008, in terms of dollars and deals, as strategic buyers, private equity and venture funds continue to allocate capital to growing and established companies."
Some highlights from the report include:
- The second quarter's PIPE transactions volume was up 28.8% compared to the same time last year, according to PrivateRaise, a service of The Deal that tracks PIPEs that raise at least $1 million.
- The dollars invested in PIPE transactions in second-quarter 2015 tripled when compared to the same time last year. This is most likely due to more private equity, venture capital and strategic ventures entering the market.
- The proportion of at-the-market offering facilities out of the total dollars invested accounted for 22.2% in the second quarter of 2015.
- Healthcare was the most active sector, accounting for 32.3% of the total transactions for the quarter, while technology and energy companies made up 14.8% and 12.7% of the total, respectively.
- The number of confidentially marketed public offerings, or CMPOs, was the same in the second quarter and the first quarter, while the amount raised in CMPOs more than tripled this quarter, to $1.42 billion.
- Sabby Management LLC was the top-ranked investor in the second quarter by number of investments, with 13 deals. LH Financial Services Corp., ranked second, invested in six offerings. Empery Asset Management LP, Anson Capital LP and Broadfin Capital LLC, all ranked third for the second quarter, invested in five deals.
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Contact: Aedin Moloney, TheStreet, Inc., Aedin.Moloney@thestreet.com
SOURCE TheStreet, Inc.