The resurgence of special purpose acquisition
companies (SPACs) as an alternative to traditional IPOs was one of
the major talking points of 2020. SPACs enjoyed somewhat of a
renaissance in 2020, particularly in the United
States1
and have become attractive propositions for investors, venture
capital firms and private equity funds looking to efficiently
deploy capital quickly and enhance their portfolios in an era of
low interest rates and market
volatility2
.
The SPAC boom showed little sign of slowing as it moved through
the first quarter of 20213 as investors continued to
search for the most effective jurisdictions in which to incorporate
SPAC vehicles. Offshore jurisdictions, including the Cayman Islands
(Cayman) and the British Virgin Islands (BVI), have proven to be
particularly well-suited to SPACs given their business-friendly,
flexible and internationally recognised legal regimes, and SPACs
continue to be incorporated in these jurisdictions at a
