Many people reading this will have already read about the huge
success of SPACs in the US (if not, please do read this enlightening article by Ogier BVI
partner, Michael Killourhy). A SPAC (special purpose acquisition
company) is also known as a "blank cheque company" as at
the point investors commit their monies, there is no definitive
target for the SPAC to spend those funds on. Since 2017, their
popularity has surged in the US and the $48bn so far raised in 2020
is already three times the amount raised last year.
The attractiveness of SPACs is, again, well-documented. It
provides access to deals more often seen in private equity
transactions, but with the benefit of the liquidity of public
markets to exit at the time of your choosing, not the PE
fund's.
