Lesser-Known Investments Burgeoned in Troubled '03

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Institutional investors searching for alternatives to the troubled mutual fund market last year boosted assets in products like Pipes and publicly registered direct participation programs.

The asset total in Pipes, or private investments in public equity, reached $19 billion last year, up about 12% from the year before, according to PIPEs Report, a newsletter. These privately negotiated deals are used by companies to generate capital, and more banks, including Goldman Sachs, UBS, and Merrill Lynch, are offering them to large investors as alternative investment products.

"Every major bank is looking at Pipes," said Steven Dresner, publisher of PIPEs Report.

Bruce Jones, an analyst in Chicago, said alternative investment …