PrivateRaise Releases 2008 Q1-Q2 PIPE League Tables; Large Companies Turn to PIPEs as Small-cap Activity Drops
NEW YORK--(BUSINESS WIRE)--Private placements of securities by publicly traded companies increased in the second quarter, as investment volume remained at record levels, according to data tracked by PrivateRaise, a service of DealFlow Media (www.dealflowmedia.com/privateraise).
Public companies closed 348 PIPEs, raising $21.6 billion in the second quarter, a 14% increase in deals but a 50% decline in capital investment over the previous quarter, which set a record for total investment via PIPEs. Compared to the year-ago quarter, deal activity fell 21% while total investment rose 118%, as PIPE issuance by distressed Wall Street institutions accelerated. At the same time, a bear market in small- and micro-cap stocks depressed activity in the PIPE market’s traditional core constituency of under-$250 million market cap companies.
"The second quarter’s activity continued to play out to broad themes in the market, one secular, and the other more cyclical," commented James Summitt, Director of Research at PrivateRaise. "First is the growing acceptance of PIPEs by large cap companies as an efficient vehicle for quickly raising capital in distressed situations, a trend that has been apparent since early 2006. Second, there is a market-based decline in traditional micro-cap company activity since late 2007, as those issuers struggle with low share prices and increased risk premiums required by PIPE investors."
"Investors’ demands for increased protection in micro-cap deals are influencing their structure," said Summitt. PIPE investments structured as convertible securities grew by 238% over the quarter a year ago, on 13% fewer deals, reflecting the preference of investors for structured securities over straight common stock deals. Common stock deals remained the most prevalent type of offering in the second quarter, at 55% of all deals closed.
Brett Goetschius, Publisher at DealFlow Media, noted, "Although economic times have cast a cloud over Wall Street, many firms have looked to the PIPE market to meet capital requirements and continue to grow their companies. Over $75 billion has been raised in the first two quarters of 2008 through 691 deals, which is the largest amount of investment in a similar period in the market’s history. Healthcare, technology and energy sectors remain the most active, while financial institutions have found refuge in PIPEs, raising over $51 billion. In a period when capital markets are in turmoil and some sectors have ceased to function altogether, the PIPE market continues to thrive."
PrivateRaise also announced today the 2008 Q1-Q2 PIPE League Tables for Placement Agents, Investment Managers, Investor Legal Counsel, Issuer Legal Counsel and Placement Agent Legal Counsel.
PrivateRaise’s award-winning service simplifies monitoring, researching and analyzing Private Investments in Public Equities (PIPEs), as well as Reverse Mergers, Shell Vehicles, and Special Purpose Acquisition Companies (SPACs).
2008 Q1-Q2 PRIVATERAISE LEAGUE TABLES
2008 Top 25 PIPE Placement Agents
(ranked by # of deals placed) Placed $ (m) Avg. $ (m) Deals
1 Rodman & Renshaw, LLC $351.06 $15.26 23
2 Canaccord Capital Corp. $364.32 $33.12 11
3 Roth Capital Partners, LLC $202.08 $20.21 10
4 Lazard $1,106.91 $122.99 9
4 Merriman Curhan Ford & Co. $195.44 $21.72 9
6 Lehman Brothers Inc. $7,390.74 $923.84 8
6 Midtown Partners & Co., LLC $26.90 $3.36 8
8 Goldman, Sachs & Co. $14,199.95 $2,028.56 7
8 Deutsche Bank AG $781.38 $111.63 7
10 Palladium Capital Advisors, LLC $16.63 $2.77 6
11 Dundee Securities Corporation $73.94 $14.79 5
11 Thomas Weisel Partners LLC $55.31 $11.06 5
13 Maxim Group, LLC $23.68 $5.92 4
13 T.R. Winston & Company, LLC $13.32 $3.33 4
13 Emerging Growth Equities, Ltd. $13.27 $3.32 4
16 CIBC World Markets Inc. $1,541.89 $513.96 3
16 BMO Financial Group $160.56 $53.52 3
16 National Bank Financial Inc. $55.20 $18.40 3
16 Oppenheimer & Co. Inc. $51.30 $17.10 3
16 Chardan Capital Markets $33.40 $11.13 3
16 PI Financial Corp. $30.42 $10.14 3
16 Westminster Securities Corporation $21.35 $7.12 3
16 Kuhns Brothers, Inc. $21.00 $7.00 3
16 Ladenburg Thalmann & Co., Inc. $14.64 $4.88 3
16 Collins Stewart Inc. $14.02 $4.67 3
2008 Top 25 PIPE Placement Agents
(ranked by $ placed) Placed $ (m) Avg. $ (m) Deals
1 Goldman, Sachs & Co. $14,199.95 $2,028.56 7
2 Lehman Brothers Inc. $7,390.74 $923.84 8
3 UBS Securities LLC $2,621.89 $1,310.94 2
4 CIBC World Markets Inc. $1,541.89 $513.96 3
5 Friedman, Billings, Ramsey & Co.,
Inc. $1,150.00 $1,150.00 1
6 Lazard $1,106.91 $122.99 9
7 Deutsche Bank AG $781.38 $111.63 7
8 J.P. Morgan Chase & Co. $760.00 $760.00 1
9 Canaccord Capital Corp. $364.32 $33.12 11
10 Rodman & Renshaw, LLC $351.06 $15.26 23
11 Sandler O'Neill & Partners, L. P. $250.00 $250.00 1
12 Roth Capital Partners, LLC $202.08 $20.21 10
13 Merriman Curhan Ford & Co. $195.44 $21.72 9
14 BMO Financial Group $160.56 $53.52 3
15 Jefferies & Company Inc. $108.72 $54.36 2
16 BBY Limited $105.00 $105.00 1
16 Wellington West Capital Markets Inc. $105.00 $105.00 1
18 Morgan Joseph & Co. Inc. $100.00 $100.00 1
18 Cohen & Steers Capital Advisors, LLC $100.00 $100.00 1
20 RBC Capital Markets $94.50 $47.25 2
21 Casimir Capital L.P. $90.00 $45.00 2
22 Brean Murray, Carret & Co., LLC $80.00 $40.00 2
23 Blackmont Capital Inc. $74.03 $37.02 2
24 Dundee Securities Corporation $73.94 $14.79 5
25 Cowen and Company, LLC $62.38 $31.19 2
2008 Top 25 PIPE Investors
(ranked by # of deals invested) Invested $ (m) Avg. $ (m) Deals
1 Downsview Capital, Inc. $20.31 $1.07 19
2 Enable Capital Management, LLC $31.50 $1.97 16
3 UBS AG $49.07* $3.77* 14
3 Hudson Bay Capital Management LP $48.02 $3.43 14
5 Iroquois Capital L.P. $25.25 $1.94 13
5 Whalehaven Fund Ltd. $4.47* $0.41* 13
7 Wellington Management Company, LLP $489.20* $44.47* 12
7 Highbridge Capital Management, LLC $182.65* $16.60* 12
9 Ramius Capital Group, LLC $131.23 $11.93 11
9 Yorkville Advisors, LLC $43.28 $3.93 11
9 Chestnut Ridge Capital $2.82 $0.26 11
12 Guerrilla Capital Management $13.94* $1.55* 10
12 Atoll Asset Management, LLC $9.27* $1.03* 10
12 LH Financial Services Corp. $5.04 $0.50 10
15 Whitebox Advisors, Inc. $59.54* $7.44* 9
15 Victus Capital, LLC $35.00 $3.89 9
15 Crestview Capital Funds $5.09 $0.57 9
18 Ardsley Partners $30.84 $3.85 8
18 Professional Traders Management, LLC $16.15* $2.31* 8
18 Octagon Capital Partners $0.70 $0.09 8
21 T. Rowe Price Group, Inc. $482.78* $80.46* 7
21 Credit Suisse Group $416.62* $69.44* 7
21 Deerfield Management Company $346.00* $57.67* 7
21 Heights Capital Management, Inc. $124.06 $17.72 7
21 Quercus Trust $90.41 $12.92 7
2008 Top 25 PIPE Investors
(ranked by $ invested) Invested $ (m) Avg. $ (m) Deals
1 Government of Singapore Investment
Company Pte, Ltd. $17,226.12* $8,613.06* 3
2 Kuwait Investment Authority $5,009.01* $1,252.25* 5
3 TPG $3,385.43 $564.24 6
4 Korean Investment Corporation $2,000.00 $2,000.00 1
5 Fidelity Management & Research
Company $1,259.97* $251.99* 6
6 Capital Research and Management
Company $1,206.20* $402.07* 5
7 Mizuho Financial Group $1,200.00 $1,200.00 1
8 Kohlberg Kravis Roberts & Co. $937.50 $937.50 1
9 Matlin Patterson Global Advisors LLC $858.96 $286.32 3
10 Corsair Capital Management Inc. $785.28 $392.64 2
11 New Jersey Division of Investment $700.00 $350.00 2
11 Toscafund Asset Management LLP $700.00* $700.00* 2
13 Warburg Pincus LLC $606.46 $202.15 3
14 Canyon Capital Advisors, LLC $511.23 $127.81 4
15 Thomas H. Lee Partners, L.P. $495.00 $495.00 1
16 Manulife Financial Corporation $490.63 $490.63 1
17 Wellington Management Company, LLP $489.20* $44.47* 12
18 T. Rowe Price Group, Inc. $482.78* $80.46* 7
19 Caisse de depot et placement du
Quebec $441.57 $441.57 1
20 Credit Suisse Group $416.62* $69.44* 7
21 D.E. Shaw & Co., LLC $380.00 $95.00 4
22 Lansdowne Partners Limited $375.00 $187.50 2
23 Och-Ziff Capital Management Group,
LLC $360.00* $90.00* 5
24 Hotchkis and Wiley Capital
Management $358.09* $119.36* 4
25 Fairfax Financial Holdings Limited $350.00 $350.00 1
2008 Top 25 PIPE Investor Law Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Schulte Roth & Zabel LLP $2,761.55 $78.90 35
2 Feldman Weinstein & Smith LLP $89.01 $4.45 20
3 Loeb & Loeb LLP $39.05 $5.58 7
4 Greenberg Glusker Fields Claman &
Machtinger, LLP $192.25 $32.04 6
4 Greenberg Traurig, LLP $159.25 $26.54 6
4 Grushko & Mittman, P.C. $19.97 $3.33 6
7 Proskauer Rose LLP $146.00 $29.20 5
7 Quarles & Brady Streich Lang LLP $17.91 $3.58 5
9 Shearman & Sterling LLP $508.02 $127.01 4
9 O'Melveny & Myers LLP $150.00 $37.50 4
9 Cooley Godward Kronish LLP $72.34 $18.09 4
12 Weil, Gotshal & Manges LLP $815.08 $271.69 3
12 Fried, Frank, Harris, Shriver &
Jacobson LLP $790.35 $263.45 3
12 Bingham McCutchen LLP $305.00 $101.67 3
12 Katten Muchin Rosenman LLP $240.00 $80.00 3
12 Barack Ferrazzano Kirschbaum Perlman
& Nagelberg $125.10 $41.70 3
12 Olshan Grundman Frome Rosenzweig &
Wolosky LLP $113.89 $37.96 3
12 Ropes & Gray LLP $64.09 $21.36 3
12 Latham & Watkins LLP $57.22 $19.07 3
12 Porter & Hedges $26.68 $8.89 3
12 McDermott Will & Emery $25.43 $8.48 3
12 Lowenstein Sandler PC $13.18 $4.39 3
12 Anslow & Jaclin, LLP $11.03 $3.67 3
12 Peter J. Weisman, P.C. $8.75 $2.92 3
12 Kramer Levin Naftalis & Frankel LLP $6.75 $2.25 3
2008 Top 25 PIPE Issuer Law Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Sichenzia Ross Friedman Ference LLP $109.40 $5.47 20
2 Greenberg Traurig, LLP $118.09 $9.84 12
3 Richardson & Patel, LLP $59.97 $5.45 11
4 Clark Wilson LLP $35.05 $3.50 10
5 Loeb & Loeb LLP $159.44 $17.72 9
5 Hodgson Russ LLP $86.35 $9.59 9
7 Latham & Watkins LLP $161.49 $20.19 8
7 K & L Gates $92.04 $11.51 8
9 Skadden, Arps, Slate, Meagher & Flom
LLP $373.31 $53.33 7
9 Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo, P.C $69.52 $9.93 7
9 Morgan, Lewis & Bockius LLP $40.48 $5.78 7
12 Jones, Day, Reavis & Pogue $7,151.36 $1,191.89 6
12 Heller Ehrman/Venture Law Group $1,313.99 $219.00 6
12 Cooley Godward Kronish LLP $229.53 $38.26 6
12 Haynes and Boone, LLP $130.27 $21.71 6
16 Wachtell, Lipton, Rosen & Katz $1,154.50 $230.90 5
16 Lowenstein Sandler PC $182.00 $36.40 5
16 Paul, Hastings, Janofsky & Walker
LLP $155.18 $31.04 5
16 Weil, Gotshal & Manges LLP $132.02 $26.40 5
16 DLA Piper Rudnick Gray Cary US LLP $104.75 $20.95 5
16 Guzov Ofsink, LLC $48.49 $9.70 5
16 Bingham McCutchen LLP $18.14 $3.63 5
23 Sullivan & Cromwell $7,600.07 $1,900.02 4
23 Simpson, Thacher & Bartlett $7,199.95 $1,799.99 4
23 Shearman & Sterling LLP $1,587.12 $396.78 4
2008 Top 25 PIPE Placement Agent Law
Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Feldman Weinstein & Smith LLP $260.90 $13.10 20
2 Lowenstein Sandler PC $758.30 $75.80 10
3 Proskauer Rose LLP $564.73 $80.70 7
4 Morrison & Foerster LLP $387.49 $64.60 6
5 Winston & Strawn LLP $76.76 $15.35 5
6 Goodwin Procter LLP $154.94 $51.65 3
7 Pillsbury Winthrop Shaw Pittman LLP $50.18 $25.09 2
8 Cassels Brock & Blackwell LLP $4.97 $2.49 2
9 Skadden, Arps, Slate, Meagher & Flom
LLP $1,471.89 $1,471.89 1
9 Stikeman Elliott LLP $1,471.89 $1,471.89 1
9 O'Melveny & Myers LLP $60.00 $60.00 1
9 Hahn & Hessen LLP $40.00 $40.00 1
9 Blake, Cassels & Graydon LLP $35.56 $35.56 1
9 Sidley Austin LLP $34.50 $34.50 1
9 Wilmer Cutler Pickering Hale and
Dorr LLP $30.90 $30.90 1
9 Arnold & Porter LLP $14.80 $14.80 1
9 Borden Ladner Gervais LLP $14.80 $14.80 1
9 Littman Krooks LLP $10.94 $10.94 1
9 Sichenzia Ross Friedman Ference LLP $10.00 $10.00 1
9 Golenbock Eiseman Assor Bell &
Peskoe LLP $6.00 $6.00 1
9 Morse, Zelnick, Rose & Lander, LLP $6.00 $6.00 1
9 Keesal, Young & Logan $5.65 $5.65 1
9 Malone & Bailey, PC $4.00 $4.00 1
9 Ellenoff Grossman & Schole LLP $3.65 $3.65 1
9 Cozen O'Connor $3.59 $3.59 1
(1) All League Tables for 1/1/08 - 6/30/08 (PrivateRaise data as of 8/1/08)
(2) PIPE Placement Agent League Tables, for co-agented transactions,
each Agent is allocated 100% of Issuance Amount
(3) PIPE Investor League Tables, exclude Corporate Entities (e.g., Microsoft)
(4) PIPE Investor League Tables, (*) exclude transactions where Investment
Amount is Unknown
(5) All League Tables exclude Equity Line transactions
(6) All League Tables exclude PIPE transactions executed by Foreign-Based Issuers
that trade on the Over-the-Counter market (Pink-Sheets)
About DealFlow Media
DealFlow Media was founded in 2003 with the launch of The PIPEs Report, the premier research publication for those in the equity private placement market. Since its inception, DealFlow Media has distinguished itself as a provider of independent research and analysis of alternative asset markets. The company has grown rapidly and now publishes seven alternative investment reports and weekly news wires as well as hosting conferences and webinars throughout the year.
About PrivateRaise
PrivateRaise is the leading source for data and analysis of private investments in public equity (PIPEs), Reverse Mergers, and Special Purpose Acquisition Companies (SPACs). This award-winning service simplifies researching these investment structures and the entities associated with these transactions including investors, placement agents, and law firms. PrivateRaise also offers the only comprehensive database of alternative public offering transactions and a proprietary directory of market participants.
PrivateRaise information services can be accessed at www.dealflowmedia.com/privateraise.
Contact:
PrivateRaise, a service of DealFlow Media Phil Kerewich T: 212-688-4519 F: 212-688-1701 E: pkerewich@privateraise.com
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