Should private equity firms swipe right or left on SPACs?

Not always a perfect match

clock • 4 min read

Appetite for special purpose acquisition companies, aka SPACs, has skyrocketed in the past year, especially among private equity firms.

With their experience in deal origination, financing and value-creating, private equity firms seem to be natural allies of the SPAC structure and model. 10% of the SPACs raised over the past year 15 months have been backed by private equity firms. However, just because private equity and SPACs are the right match on paper, does not mean the relationship will be smooth sailing. Private equity firms also need to be thinking about changing regulations, with UK and Singapore regulators trying to make listing SPACs easier, while the SEC are tightening controls In light of this, we explore ...

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