How to get involved in Pre IPO/PIPE deals via banks

To systematically build access to pre-IPO/PIPE deals via banks, here are some best practices and advice based on the most helpful WSO content:

1. Engage with Investment Banks (BB and MM):

   • Your ticket size of $5mn to $10mn is generally on the smaller side for BB banks but could be attractive for MM banks, especially for PIPE deals. MM banks often work on deals with smaller ticket sizes and may be more open to partnerships with emerging PE firms.
   • Build relationships with the ECM (Equity Capital Markets) teams at these banks. They are typically the ones handling pre-IPO and PIPE transactions. Establishing a track record with MM banks can also help you gain credibility and access to larger BB deals over time.

2. Leverage Private Banking (PB) Channels:

   • If you choose to go through PB instead of ECM teams, note that PB teams often cater to smaller ticket sizes and may charge higher fees. However, they can provide access to niche opportunities that align with your strategy.
   • Fees for PB involvement can vary significantly, so it’s essential to negotiate terms upfront and understand the cost structure.

3. Demonstrate Value to Banks:

   • Highlight your ability to close deals quickly and your focus on pre-IPO/PIPE opportunities. Banks value clients who can execute efficiently and align with their deal flow.
   • Showcase your recent $7mn PIPE deal as a case study to demonstrate your expertise and commitment to this space.

4. Expand Your Network:

   • Attend industry events, conferences, and networking sessions where bankers, advisors, and other PE firms gather. Building personal relationships can open doors to exclusive deal opportunities.
   • Utilize platforms like Dealbook, PEHub, and Merger Market to stay updated on deal activity and identify banks actively working on pre-IPO/PIPE transactions.

5. Understand Market Trends:

   • Stay informed about the current deal environment. For example, the WSO dataset highlights that the market for biotech and medtech IPOs saw a significant boom followed by a downturn, which impacted PIPE deals. Understanding these trends can help you position your firm strategically.

6. Collaborate with Other Investors:

   • Partnering with other PE firms or institutional investors can help you pool resources and access larger deals. This approach can also make your firm more attractive to banks.

By focusing on these strategies, you can systematically build relationships with BB and MM banks, enhance your access to pre-IPO/PIPE deals, and position your firm for long-term success in this space.

Sources: How to Find M&A/IPO Deals that a Bank has Advised On?, Roadmap for IBD Coverage Associate to Career Banker, PE analyst at a megafund vs. banking/consulting, Leave banking to start a PE fund?, Advice for New Analysts Seeking PE Exits