The volume of SPAC IPOs and mergers has reverted to pre-hype levels. Funding from public and private investors has plunged, while redemptions by existing investors have increased sharply.
The outlook for spacs is far more muted than in the past few years, according to Seeking Alpha. They expect a return to a far smaller level of issuance, deal making and execution as the space bears more scrutiny from sponsors, investors and regulators alike.
Seeking Alpha anticipates that there will still be opportunities – albeit a fraction of recent volume – for seasoned, sophisticated investors to take advantage of in 2023, due to the smaller market size, a decrease in competition for deals, fewer sponsors and stronger companies coming to market. Read more.
Source: State of the SPAC Market