Why might a large corporation want to raise long-term capital through a private placement rather than a public offering?

Answer 1

A large corporation might prefer a private placement to raise long-term capital because it typically involves less regulatory scrutiny and faster execution compared to a public offering, allowing for quicker access to funds. Additionally, private placements often entail lower costs related to underwriting and compliance, making them a more efficient option for raising capital. Furthermore, they allow the company to maintain greater control over the investment process and the identity of investors, which can help in fostering long-term relationships.