A Special Purpose Acquisition Company (SPAC) is a type of publicly traded investment vehicle that is created specifically to acquire or merge with another company. SPACs are also sometimes called “blank check companies” because they are set up with the sole purpose of raising capital through an initial public offering (IPO) to later identify and merge with an existing private company.
Just as Chamath Palihapitiya was the face of the SPAC frenzy that gripped financial markets at the start of the year, he is today the face of the bust.
It was another busy week for the SPAC market with numerous deal announcements and rumored deals. The market brought down the valuation of many SPACs late in the week.
Raising special purpose acquisition companies is en vogue in the COVID-19 economy. From venture capitalist Chamath Palihapitiya to footballer-turned-activist Colin Kaepernick to former House Speaker Paul Ryan, it seems like everyone is taking part in this new variant of initial public offerings.
Following an explosive finish for the initial public offerings market in 2020, capital markets lawyers are expecting that momentum to carry into the new year independent of the pandemic and changes in the presidential administration.
This year has seen an incredible increase in interest surrounding special purpose acquisition companies (SPACs). In fact, many companies have come to the market via this path. These companies do not have operations, but instead exist to raise capital via an initial public offering (IPO) to fund the company they merge with.
In a recent installment of the Capital Markets Series, I joined Jon Campagna, CFO of Virgin Galactic, and other experienced advisors and professionals from KPMG and BofA to discuss how private companies can unlock capital-raising opportunities offered by “blank check” investors, also known as SPACs.
Three blank-check companies backed by venture investor Chamath Palihapitiya have raised a total of $2.1 billion through initial public offerings, the companies said in separate statements on Thursday.
U.S. insurance startup Clover Health will go public through a merger with blank-check firm Social Capital Hedosophia Holdings Corp III IPOC.N in a deal valued at $3.7 billion including debt, the company said on Tuesday.
One of the hottest themes on Wall Street is the proliferation of special purpose acquisition companies (SPACs) and where there’s a hot theme, an exchange traded fund usually isn’t far behind.
It’s a brilliant, blue-sky afternoon in mid-August, and Bill Ackman is enjoying being, well, Bill Ackman.
Maybe it’s the sun. Or maybe it’s the aftermath of his latest tour de force — the IPO of a $4 billion special-purpose acquisition company, or SPAC, the largest of its kind during a year when such blank-check deals are exploding.
New York lawyer Douglas Ellenoff’s firm was the go-to adviser for “blank-check” initial public offerings long before the niche market exploded into the most fashionable way to go public.
SPACs used to be a small segment of the market, but elite law firms have flocked to the sector in…
Billionaire Richard Branson, who is founder of the Virgin Group has joined the “blank-check” frenzy and is looking to raise $400 million to fund a possible takeover.
Blank check IPOs are the latest craze to hit the stock market, with Virgin Galactic, DraftKings and Nikola among the well-known special purpose acquisition companies out there. But what exactly are SPACs?
One pronounced trend for 2020 is the growth of funds flowing to Special Purpose Acquisition Companies (SPACs), sometimes called blank-check…