Private Placement

Private placements offer an important channel to listed and private companies to raise debt and equity from investors in non-public offerings. There is an array of rules in place in jurisdictions around the world defining the specific rules around what constitutes a private placement, but in general private placements are made to one or a limited number of accredited investors or qualified institutional investors. They cannot be publicly offered and do not need to be registered with regulatory authorities. Companies use the private placement route to maintain confidentiality and/or to diversify their sources of financing. Debt private placements can be senior or subordinated, secured or unsecured, structured or vanilla. They are typically long-term. Terms can be tailored to investor requirements. Companies can arrange private placements bilaterally with an investor or investors or they can be arranged by investment banks (typical for larger offerings).