IPOs Surge While Market Tightens, But Opportunities Remain

Special purpose acquisition companies (“SPACs”) grabbed the investment spotlight this year and remain among the most active investment classes in the market. While the SPAC model has evolved over the better part of the past two decades, SPACs have recently enjoyed an unprecedented surge in popularity as a result of a number of high-profile SPAC launches and subsequent business combinations. Third-party investors have increasingly had the opportunity to also participate in SPAC sponsor vehicles. In addition, PIPEs remain a key component of nearly all successful SPAC business combinations. Not surprisingly, as a result of recent successful SPAC IPOs, along with the increasing availability of related SPAC sponsor vehicle investments and SPAC PIPEs, interest in prospective new SPACs remains high across the spectrum.

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This SRZ publication was authored by Ele Klein.

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