Blank-check company sponsors have been raking in millions of dollars in special deal fees, aided by a few Wall Street banks that helped make the merger vehicles the hottest ride of the past year, B;loomberg reports.
But the idea that they give outsized rewards to their founders has caught on in the market and two banks are trying to fix that image with a new way of doing them.
Two of the banks trailing that top tier — Morgan Stanley and Evercore Inc. — are making changes to how special acquisition companies, or SPACs, are done that they say will bridge the gap between the returns that insiders get compared to regular shareholders.
The banks are zeroing in on ways to improve the structure around so-called promote fees, the stock payouts that SPAC founders receive in exchange for finding deals. Read more.
