Unblocking the PIPE – a tale of two countries

PIPE transactions are much more common in the US than in Europe. Chief among the reasons for this is that European corporate laws and stock exchange rules tend to be more restrictive than their US equivalents in certain key areas, says Weil, Gotshal & Manges. Given the recent difficult climate in Europe for small and mid-cap public companies in securing other means of funding, however, PIPEs have developed into a useful tool for private equity investors.