Private Placement

  • Also known as a Reg. D offering. The sale of a security directly to a limited number of investors in a private transaction.3
  • Private placement is a term used specifically to denote a private investment in a company that is publicly held. Private equity firms that invest in publicly traded companies sometimes use the acronym PIPEs to describe the activity. Private placements do not have to be registered with organizations such as the SEC because no public offering is involved.5