A reckoning for Spacs: will regulators deflate the boom?
The future is looking bleak for the once exciting investment prospect. In the past year, special acquisition companies (or SPACs) have raised a staggering $142bn pool of capital. But this trend may be on a downward turn. In this detailed insight into the world of blank check companies, Miles Kruppa and Ortenca Aliaj explore why the US Securities and Exchange Commission’s concerns about the market, including optimistic projections and celebrity endorsements, mean that SPACs are losing their appeal. And that’s not the only challenge facing them.
From Financial Times