PrivateRaise Releases 2008 Q1-Q3 PIPE League Tables; Large Companies Continue to Use PIPEs for Capital
NEW YORK -- Private placements of securities by publicly traded companies decreased slightly in the third quarter, while investment volume remained at record levels, according to data tracked by PrivateRaise, a service of DealFlow Media (www.dealflowmedia.com/privateraise).
Public companies closed 321 PIPEs, raising $22.7 billion in the third quarter, a 6% decrease in deals but a 5% increase in capital investment over the previous quarter. Compared to the year-ago quarter, deal activity fell 13.5% while total investment rose 77%, as PIPE issuance by distressed Wall Street institutions continue to dominate large-cap issuance. 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 third quarter’s activity accelerated the broad themes we identified in the second quarter," commented James Summitt, Director of Research at PrivateRaise. "First is the use of PIPEs by large cap companies, particularly financial services firms, as an efficient vehicle for raising capital in distressed situations, a trend that has been growing for over two years. Second is the ongoing bear market-related decline in traditional micro-cap company activity, as small issuers have been roiled by low share prices and increased risk premiums required by PIPE investors."
PIPE-issuing companies with market capitalizations of $1 billion or greater raised almost $17 billion in 15 transactions in the third quarter, ahead of the second quarter’s $16 billion raised in 18 deals. In contrast, only $6.5 billion was raised in nine deals by billion-dollar market cap companies in the third quarter of 2007. The capital raised by billion-dollar or larger market cap companies accounted for nearly 75% of all money raised in the PIPE market last quarter. Yet these large cap issuers account for less than 5% of the total transactions in the quarter.
Brett Goetschius, Publisher at DealFlow Media, noted, "While the recent turmoil in the global capital markets has all but shuttered the traditional debt and equity markets, many companies continue to look to the PIPE market to meet their capital needs. Most significantly, large cap companies have found the PIPE structure to be the fastest and most efficient way to raise desperately needed capital. Over $87 billion has been raised in the first three quarters of 2008 through 961 deals, which is the largest amount of investment ever over a similar period. Basic materials, energy and healthcare industries remain the most active, while financial institutions have found a lifeline via PIPE issuance, raising approximately $65 billion. The PIPE market continues to provide access to capital when other markets have failed utterly."
PrivateRaise also announced today the 2008 Q1-Q3 PIPE League Tables for Issuers, 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-Q3 PRIVATERAISE LEAGUE TABLES
2008 Top 25 PIPE Issuers
(ranked by $ raised) Raised $ (m) Avg. $ (m) Deals
1 Citigroup Inc. $12,500.00 $12,500.00 1
2 UBS AG $12,227.24 $12,227.24 1
3 Barclays PLC $8,576.93 $2,858.98 3
4 Washington Mutual, Inc. $7,199.95 $1,799.99 4
5 National City Corporation $7,000.00 $2,333.33 3
6 Merrill Lynch & Co., Inc. $6,600.00 $6,600.00 1
7 Dow Chemical Company $4,000.00 $4,000.00 1
8 Deutsche Bank AG $3,164.48 $3,164.48 1
9 Canadian Imperial Bank of Commerce $1,471.89 $1,471.89 1
10 Legg Mason, Inc. $1,250.00 $1,250.00 1
11 Thornburg Mortgage, Inc. $1,150.00 $1,150.00 1
12 General Growth Properties, Inc. $821.86 $821.86 1
13 MoneyGram International, Inc. $760.00 $760.00 1
14 Boardwalk Pipeline Partners, LP $686.00 $686.00 1
15 Delta Petroleum Corporation $684.00 $684.00 1
16 SkyTerra Communications, Inc. $650.00 $325.00 2
17 St. Joe Company $600.08 $600.08 1
18 MBIA Inc. $500.00 $500.00 1
19 Las Vegas Sands $475.00 $475.00 1
20 Standard Pacific Corp. $450.83 $450.83 1
21 Solutia Inc. $440.00 $220.00 2
22 AbitibiBowater, Inc. $350.00 $350.00 1
23 Guaranty Financial Group, Inc. $328.53 $109.51 3
24 JetBlue Airways Corporation $309.62 $309.62 1
25 ONEOK Partners, L.P. $303.21 $303.21 1
2008 Top 25 PIPE Placement Agents
(ranked by # of deals placed) Placed $ (m) Avg. $ (m) Deals
1 Rodman & Renshaw, LLC $398.89 $12.09 33
2 Canaccord Capital Corp. $525.17 $35.01 15
3 Roth Capital Partners, LLC $225.89 $16.14 14
4 Lazard $1,332.33 $102.49 13
5 Midtown Partners & Co., LLC $38.09 $3.17 12
6 Deutsche Bank AG $5,639.60 $512.69 11
6 Merriman Curhan Ford & Co. $216.52 $19.68 11
8 Lehman Brothers Inc. $7,390.74 $923.84 8
9 Goldman, Sachs & Co. $14,199.95 $2,028.56 7
10 Emerging Growth Equities, Ltd. $32.52 $5.42 6
10 Maxim Group, LLC $30.50 $5.08 6
10 Palladium Capital Advisors, LLC $16.63 $2.77 6
13 RBC Capital Markets $314.50 $62.90 5
13 Dundee Securities Corporation $73.94 $14.79 5
13 Thomas Weisel Partners LLC $55.31 $11.06 5
13 Empire Asset Management Group, LLC $18.80 $3.76 5
17 UBS Securities LLC $2,861.89 $715.47 4
17 Jefferies & Company Inc. $548.72 $137.18 4
17 Banc of America Securities LLC $418.09 $104.52 4
17 Oppenheimer & Co. Inc $166.30 $41.58 4
17 Collins Stewart Inc. $129.02 $32.26 4
17 Brean Murray, Carret & Co., LLC $126.00 $31.50 4
17 Leerink Swann & Company $110.03 $27.51 4
17 Cowen and Company, LLC $93.26 $23.31 4
17 Jesup & Lamont, Inc. $45.02 $11.26 4
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 Deutsche Bank AG $5,639.60 $512.69 11
4 UBS Securities LLC $2,861.89 $715.47 4
5 J.P. Morgan Chase & Co. $2,013.73 $1,006.87 2
6 CIBC World Markets Inc. $1,541.89 $513.96 3
7 Lazard $1,332.33 $102.49 13
8 Credit Suisse Group $1,283.73 $641.87 2
9 Friedman, Billings, Ramsey & Co., Inc. $1,150.00 $1,150.00 1
10 Jefferies & Company Inc. $548.72 $137.18 4
11 Canaccord Capital Corp. $525.17 $35.01 15
12 Banc of America Securities LLC $418.09 $104.52 4
13 Rodman & Renshaw, LLC $398.89 $12.09 33
14 RBC Capital Markets $314.50 $62.90 5
15 Keefe Bruyette & Woods, Inc. $286.62 $286.62 1
16 Sandler O'Neill & Partners, L. P. $277.51 $138.75 2
17 Roth Capital Partners, LLC $225.89 $16.14 14
18 Merriman Curhan Ford & Co. $216.52 $19.68 11
19 Oppenheimer & Co. Inc. $166.30 $41.58 4
20 BMO Financial Group $160.56 $53.52 3
21 Merrill Lynch & Co. $140.00 $70.00 2
22 Collins Stewart Inc. $129.02 $32.26 4
23 Brean Murray, Carret & Co., LLC $126.00 $31.50 4
24 CRT Capital Group LLC $115.00 $115.00 1
25 Leerink Swann & Company $110.03 $27.51 4
2008 Top 25 PIPE Investors
(ranked by # of deals invested) Invested $ (m) Avg. $ (m) Deals
1 Downsview Capital, Inc. $26.55 $0.95 28
2 Enable Capital Management, LLC $55.10* $2.40* 25
3 UBS AG $164.89* $8.24* 21
4 Hudson Bay Capital Management LP $50.97* $2.83* 19
4 Iroquois Capital L.P. $28.85 $1.52 19
6 Highbridge Capital Management, LLC $280.60* $17.54* 18
7 Whalehaven Fund Ltd. $5.12* $0.39* 16
8 Victus Capital, LLC $50.75 $3.38 15
9 Whitebox Advisors, Inc. $100.14 $7.15 14
9 Chestnut Ridge Capital $3.67 $0.26 14
11 Ramius Capital Group, LLC $150.23* $12.52* 13
11 Yorkville Advisors, LLC $57.11 $4.39 13
13 Wellington Management Company, LLP $498.46* $45.31* 12
13 Miscellaneous Nominee Names $22.55 $1.88 12
13 Guerrilla Capital Management $17.44 $1.45 12
13 Atoll Asset Management, LLC $10.01* $0.91* 12
13 Crestview Capital Funds $8.34 $0.69 12
18 LH Financial Services Corp. $5.29 $0.48 11
19 Fidelity Management & Research $1,437.07* $159.67* 10
Company
19 T. Rowe Price Group, Inc. $536.19* $59.58* 10
19 Quercus Trust $98.61 $9.86 10
19 Lehman Brothers Holdings Inc. $82.55 $8.25 10
19 Ardsley Partners $33.71 $3.37 10
24 Deerfield Management Company $405.91 $45.10 9
24 Heights Capital Management, Inc. $143.14* $17.89* 9
2008 Top 25 PIPE Investors
(ranked by $ invested) Invested $ (m) Avg. $ (m) Deals
1 Government of Singapore Investment $17,226.12* $8,613.06* 3
Company Pte, Ltd.
2 Kuwait Investment Authority $6,009.01* $1,201.80* 6
3 TPG $3,385.43 $564.24 6
4 Berkshire Hathaway Inc. $3,000.00 $3,000.00 1
5 Qatar Investment Authority $2,905.42 $2,905.42 1
6 Korean Investment Corporation $2,000.00 $2,000.00 1
7 Fidelity Management & Research $1,437.07* $159.67* 10
Company
8 Mizuho Financial Group $1,320.00 $660.00 2
9 Capital Research and Management $1,306.20* $326.55* 6
Company
10 Sumitomo Group $985.46 $985.46 1
11 Kohlberg Kravis Roberts & Co. $937.50* $937.50* 2
12 Matlin Patterson Global Advisors LLC $928.54 $309.51 3
13 Corsair Capital Management Inc. $785.28 $392.64 2
14 New Jersey Division of Investment $700.00 $350.00 2
14 Toscafund Asset Management LLP $700.00* $700.00* 2
16 Warburg Pincus LLC $606.46 $202.15 3
17 T. Rowe Price Group, Inc. $536.19* $59.58* 10
18 Och-Ziff Capital Management Group, LLC $527.74* $87.96* 7
19 Canyon Capital Advisors, LLC $511.23 $127.81 4
20 Goldman Sachs Group, Inc. $505.43 $84.24 6
21 Lansdowne Partners Limited $500.45 $166.82 3
22 Wellington Management Company, LLP $498.46* $45.31* 12
23 Thomas H. Lee Partners, L.P. $495.00 $495.00 1
24 Manulife Financial Corporation $490.63 $490.63 1
25 Caisse de depot et placement du Quebec $448.09 $224.04 2
2008 Top 25 PIPE Investor Law Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Schulte Roth & Zabel LLP $3,692.26 $68.38 54
2 Feldman Weinstein & Smith LLP $129.50 $4.05 32
3 Greenberg Glusker Fields Claman & $196.25 $24.53 8
Machtinger, LLP
3 Loeb & Loeb LLP $47.35 $5.92 8
3 Quarles & Brady Streich Lang LLP $25.91 $3.24 8
6 Lowenstein Sandler PC $63.42 $9.06 7
6 Grushko & Mittman, P.C. $23.58 $3.37 7
8 Simpson, Thacher & Bartlett $2,310.11 $385.02 6
8 Proskauer Rose LLP $296.00 $49.33 6
8 Greenberg Traurig, LLP $159.25 $26.54 6
8 Winston & Strawn $138.30 $23.05 6
12 Weil, Gotshal & Manges LLP $1,318.68 $263.74 5
12 Shearman & Sterling LLP $628.02 $125.60 5
12 Latham & Watkins LLP $418.80 $83.76 5
12 Katten Muchin Rosenman LLP $405.00 $81.00 5
12 O'Melveny & Myers LLP $245.00 $49.00 5
12 James G. Dodrill II, P.A. $9.70 $1.94 5
18 Hodgson Russ LLP $299.23 $74.81 4
18 Cooley Godward Kronish LLP $72.34 $18.09 4
18 McDermott Will & Emery $36.01 $9.00 4
18 Peter J. Weisman, P.C. $14.75 $3.69 4
22 Cleary, Gottlieb, Steen & Hamilton $2,132.70 $710.90 3
22 Fried, Frank, Harris, Shriver & $790.35 $263.45 3
Jacobson LLP
22 Powell Goldstein LLP $328.53 $109.51 3
22 Bingham McCutchen LLP $305.00 $101.67 3
2008 Top 25 PIPE Issuer Law Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Sichenzia Ross Friedman Ference LLP $136.72 $5.26 26
2 Greenberg Traurig, LLP $141.06 $8.82 16
3 Richardson & Patel, LLP $68.97 $4.93 14
4 Cooley Godward Kronish LLP $322.04 $24.77 13
5 Loeb & Loeb LLP $288.54 $24.04 12
6 Morgan, Lewis & Bockius LLP $76.47 $6.95 11
6 Clark Wilson LLP $40.70 $3.70 11
8 Paul, Hastings, Janofsky & Walker LLP $171.93 $17.19 10
8 DLA Piper $130.04 $13.00 10
8 K & L Gates $99.37 $9.94 10
8 Hodgson Russ LLP $91.04 $9.10 10
12 Sullivan & Cromwell $15,200.78 $1,688.97 9
12 Skadden, Arps, Slate, Meagher & Flom $1,083.31 $120.37 9
LLP
12 Latham & Watkins LLP $186.49 $20.72 9
15 Weil, Gotshal & Manges LLP $233.97 $29.25 8
15 Mintz, Levin, Cohn, Ferris, Glovsky $77.39 $9.67 8
and Popeo, P.C
17 Heller Ehrman LLP $1,322.99 $189.00 7
17 WilmerHale $360.42 $51.49 7
17 Lowenstein Sandler PC $188.00 $26.86 7
17 Haynes and Boone, LLP $132.08 $18.87 7
17 Anslow & Jaclin, LLP $39.41 $5.63 7
17 Baker & Hostetler LLP $28.83 $4.12 7
17 Gottbetter & Partners, LLP $28.15 $4.02 7
24 Jones, Day, Reavis & Pogue $7,151.36 $1,191.89 6
24 Shearman & Sterling LLP $1,742.12 $290.35 6
2008 Top 25 PIPE Placement Agent Law Firms
(ranked by # of deals advised) Advised $ (m) Avg. $ (m) Deals
1 Feldman Weinstein & Smith LLP $306.89 $10.96 28
2 Lowenstein Sandler, PC $760.11 $69.10 11
3 Goodwin Proctor LLP $687.95 $76.44 9
3 Proskauer Rose, LLP $631.43 $70.16 9
5 Winston & Strawn LLP $105.50 $13.19 8
6 Morrison & Foerster LLP $387.49 $64.58 6
7 Stikeman Elliott LLP $1,558.34 $779.17 2
7 Pillsbury Winthrop Shaw Pittman LLP $50.18 $25.09 2
7 Sichenzia Ross Friedman Ference LLP $40.00 $20.00 2
7 Littman Krooks LLP $13.34 $6.67 2
7 Bush Ross, P.A. $3.75 $1.86 2
12 Skadden, Arps, Slate, Meagher & Flom $1,471.89 $1,471.89 1
LLP
12 O’Melveny & Myers LLP $60.00 $60.00 1
12 Hahn & Hessen LLP $40.00 $40.00 1
12 Blake, Cassels & Graydon LLP $35.56 $35.56 1
12 Sidley Austin LLP $34.50 $34.50 1
12 WilmerHale $30.90 $30.90 1
12 Davis Polk & Wardwell $25.88 $25.88 1
12 Greenberg Traurig $19.08 $19.08 1
12 Arnold & Porter LLP $14.80 $14.80 1
12 Borden Ladner Gervais LLP $14.80 $14.80 1
12 Choate Hall & Stewart LLP $11.86 $11.86 1
12 Proskauer Rose $8.72 $8.72 1
12 Fraser Milner Casgrain LLP $8.15 $8.15 1
12 Morse, Zelnick, Rose & Lander, LLP $6.00 $6.00 1
(1) All Rankings for 1/1/08 - 9/30/08 (PrivateRaise.com data as of 10/13/08)
(2) PIPE Placement Agent Rankings, for co-agented transactions each Agent is
allocated 100% of Issuance Amount
(3) PIPE Investor Rankings, exclude Corporate Entities (e.g., Microsoft)
(4) PIPE Investor Rankings, (*) Excludes transactions where Investment Amount
is Unknown
(5) All Rankings exclude Equity Line transactions
(6) All Rankings 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:
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Phil Kerewich
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