Billionaire Ken Moelis Suggests Sports Betting as Target in New SPAC

Billionaire banker Ken Moelis’ new special purpose acquisition company may target sports betting or media, among a wide swath of potential areas the blank check firm mentions in its prospectus filed with the SEC today.

The SPAC, II, has filed its intention to raise $250 million in an IPO, citing “particularly attractive investment opportunities in certain high-growth sectors including media, /payments, software- and technology-enabled services, online gaming/sports betting, healthcare and disruptive consumer,” according to its prospectus. That wide selection of target industries is nearly identical to those listed in the first Atlas Crest SPAC, which raised $500 million in October and is on the hunt for its own acquisition.

Moelis’ firm, Moelis & Co., is a well-known investment bank that has brokered hundreds of transactions, many in sports business. Among its notable deals in the past six months are Sinclair Broadcast’s sports betting and online gambling link-up with Bally’s in November, sports betting-focused BetBull’s partnership with Wynn Resorts, and PointsBet’s $275 million stock placement. At the start of 2020, Moelis also advised on Penn National’s $163 million investment in Barstool Sports.

Leading the Atlas Crest II SPAC as CEO is Michael Spellacy, an Irishman well known in the global wealth management and capital markets sectors, most recently as a senior managing director at Accenture. Four other listed members of the management team also have deep investment experience.

are blank check firms that raise money at an IPO with the goal of finding another business to buy and take public. Nearly 250 SPACs went public in 2020, including 40 with a sports focus or sports business connection.

Source: Billionaire Ken Moelis Suggests Sports Betting as Target in New SPAC