Piped deals or Private placement is the process of capital raising, a variant of funding process wherein securities are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.
There may be multiple reasons for this, but these are private bonds sold to different funding partners like banks, investors, and insurance companies to name a few. The basic purpose of such a transaction is Investment and not resale activity for the Investors. For the Issuers it is simply a capital raising tool without the hassles and rigors of the securities Regulators.
As a mandatory compliant tool, we create the PPM (Private Placement Memorandum) with the complete description of the security and the terms of the sale including the issuer’s financial situation and applicable risk factors. Because the investor is chosen, Private placement is also called Direct placement.
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