Mon, Oct 25, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The SPAC boom slows down, but the vehicle remains popular with sponsors

Wednesday, May 26, 2021

Bailey McCann, Opalesque New York:

SPACs have had a rough ride over the past couple of months. A slow down in deal activity combined with increased regulatory scrutiny and investment underperformance have had a chilling effect. A new report from law firm Katten suggests that despite these headwinds, SPACs remain popular with some parts of the market.

According to the report, in the first quarter of 2021, 296 SPAC IPOs were completed. That's 48 more than in all of a record-breaking 2020 - when the total number of SPACs grew by more than 300 percent over 2019. However, it's nearly impossible that the SPAC market will maintain this pace throughout the rest of the year without a significant rebound in activity. Investors in the report suggest that activity might return toward the end of this year and into 2022 after the market has had time to digest recent activity and respond to regulatory concerns.

"It appears, more generally, that the momentum fueling the SPAC market is sustainable," said Brian Hecht, a partner in Katten's New York office.

Regulatory scrutiny was listed as the top reason for the SPAC slowdown. Issuers will have to take a close look at current accounting practices to make sure that they are in line with the SEC's recent comments on accounting projections. This will take some time, however. Respondents seem relatively confident that once the market absorbs these changes activity will return.

Katten surveyed private equity, ve......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Is the SPAC boom fizzling out?, SPAC merger mania: Companies that went public via blank-check merger in Q3, SPAC marketing heavily curtailed in House Democrats' draft bill[more]

    Is the SPAC boom fizzling out? From Crunch Base: SPACs may be fizzling out. Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to

  2. Institutional Investors: Vanderbilt University endowment records 57.1% return for fiscal year, MIT endowment logs 55.5% return for latest fiscal year, AP1 re-tenders $720m emerging markets small-cap mandate, Harvard, world's wealthiest university, sees endowment soar to $53.2bn, San Francisco shifts passive equity mandate to active BlackRock ESG strategy[more]

    Vanderbilt University endowment records 57.1% return for fiscal year From PIonline.com: Vanderbilt University's endowment returned a net 57.1% in the fiscal year ended June 30, according to a financial report on the Nashville, Tenn.-based university. The report did not provide benchma

  3. New Launches: Massar Capital launches new global discretionary strategy, White Oak closes latest direct lending fund at $1.3bn, Aterian replicates speedy fundraise to collect $830m in nine weeks, Sofinnova holds $548m final close for Capital X, Multicoin Capital targets $250m for third crypto VC fund, Tobam launches French bitcoin and blockchain fund[more]

    Massar Capital launches new global discretionary strategy Massar Capital Management has launched a new discretionary macro hedge fund strategy which aims to capitalize on directional trading opportunities across a broad set of global markets. The Massar Macro Directional is the N

  4. How Viking Global became the hedge-fund industry's hottest launch pad[more]

    From Business Insider: Since Dan Sundheim's massively successful launch of D1 Capital in 2018, there have been six more spinoffs from Viking Global that have collectively raised billions - and at least one more is in the works. Among them: Grant Wonders, 31, who launched Voyager Global this ye

  5. SPACs: After early investors flee SPAC deals, day traders rush in, PE-backed electric car maker Polestar worth $20bn in US SPAC deal, Europe's IPO market roars back to life but where are the SPACs?[more]

    After early investors flee SPAC deals, day traders rush in From WSJ: Day traders are targeting some companies that recently closed SPAC mergers, reinvigorating some of the meme-stock excitement that helped make such deals popular early in the year. The latest special-purpose-acquis