With hundreds of SPACs holding billions of dollars in capital looking for deals, it can be hard for a blank-check company to stand out, The New York Times’ DealBook reports. One option is linking the “promote” — the stake in a firm, usually 20 percent, that goes to a sponsor for setting it up — to post-merger share performance. That’s what NightDragon Acquisition Corp, a SPAC started by the former FireEye chief Dave DeWalt, is doing with bankers at Morgan Stanley. It’s the latest example of how competition is making SPACs, which, as the Times reported, can be structured to favor sponsors over later investors, more friendly to all shareholders.
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