The PIPEs Report - May 20, 2008

Investors, Placement Agents Mean to Grow Via PIPEs

A handful of relative newcomers and occasional PIPE market participants have announced plans to ratchet up their private placement activity. They include MACC Private Equities, Paragon Capital, Bryant Park Capital and JMP Securities. Like other market observers, the funds and placement agents consider the PIPE market to be a growing arena, given that private placements have all but replaced secondary offerings among small companies over the last several years. Full Story

As China Market Crowds, Some Investors Look to Vietnam

China, with the world's fastest growing economy, has proven attractive to PIPE investors. So what of the world's second fastest growing economy?

Vietnam's gross domestic product grew by 8.5% in 2007, just one year after the U.S. trade embargo was lifted. At least three Vietnamese companies have listed on U.S. stock markets and some PIPE market players say they're excited about the country's potential.

A recent action by the Securities and Exchange Commission and a state court ruling in New York showed that the price can be steep for arranging private placements while not registered as a broker-dealer.

The SEC has sanctioned unregistered brokers of private placements in the past, but those actions have nearly always cited other violations of securities law. A sanction the commission levied in April, that included a year-long ban from the securities industry, raised no legal issues other than those surrounding registration.

• Fort Mason Bows Out
• SEC Inspector General to Audit Naked Short Selling Investigations
• Bitter Feud Rages On Between Jayhawk, Primarius
• Enforcement Actions Arrive in CMKM Case
• Universal Express CEO Jailed
• Sands Brothers' New Fund Pushes PIPE Alternative
• Deutsche Bank Hedge Fund Survey Tells of Cash to Be Spent
• Hirings & Firings