NEW YORK–(EMWNews)–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

PrivateRaise, a service of DealFlow Media Phil Kerewich T: 212-688-4519 F: 212-688-1701 [email protected]