The Big Q: What do you give a financier for Valentine’s Day?
The Big A: A SPAC (special-purpose acquisition company), of course.
After a big Y 2020 for US floats of blank-check vehicles, breaking all prior records with $83-B of proceeds from 248 deals, according to SPAC Research, this yr is already more than half way to Topping both totals in just 6 wks.
Time will tell if long-term investors will learn to love SPACs that have found acquisition targets.
What is clear, though, is that the individuals who sponsor the vehicles, taking early risk in return for up to 20% of the shares, make out very handsomely indeed.
Happy Valentine’s Day financiers!