Direct Funding Preservation Alliance
A new trade group was recently formed to help improve the public and industry image of PIPE investments. This is needed, I have heard many professionals say that this is one of the 3-5 types of hedge fund strategies that they do not want to touch within their portfolio. Here is short article excerpt on this development:
Companies that make private investments in public equities, also known as PIPE investments, have formed a trade group to educate the public about what they do.
The Direct Funding Preservation Alliance will attempt to squelch misconceptions of PIPE investors, who have been criticized as predatory investors who take advantage of companies desperate for money. Membership will include PIPE investors and industry vendors, organizers say.
Even within the publicly maligned hedge-fund industry, PIPE funds have been looked at by some as a seedy back-alley ... source