PIPEs smoking as they head east
PIPEs are set to become more popular outside the US as firms list overseas to steer clear of the Sarbanes-Oxley Act, PIPE fund managers Cornell Capital Management explain to Solomon Teague
Cornell Capital Management is one of the world's most significant PIPE investors: according to Knobias' pipeTRAC database, Cornell ranked first among its peers in both deal value and number of deals for PIPEs in the year to May 2006. According to the database, it completed 124 deals, worth an aggregate $1.36bn.
It targets 15%-20% annualised returns with no downside volatility, in a portfolio of 40-50 positions. In five years, it has not had a drawdown.
There were $16bn PIPE deals transacted in
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