The blank-check company boom shows no signs of slowing, with SPACs raising nearly $26 billion in January, a monthly record in a red-hot market, reports New York Times DealBook columnist Andrew Sorkin.
SPACs typically acquire a target around five times their size: With more than 300 such funds sitting on some $100 billion in cash currently seeking acquisitions, that implies financial firepower of $500 billion.
“Every friend is launching a SPAC,” the billionaire fund manager Bill Ackman told Sorkin. “It’s like, ‘Oh, yeah, I got one, too.’” Ackman’s SPAC is the largest, raising $4 billion last year. Read more.
