The recent regulatory scrutiny and resulting investor skepticism around SPAcs is clearing the way for better deals, former Major League All-Star, SPAC investor and presumptive NBA owner Alex Rodriguez tells Bloomberg.
“We like where the space is right now,” Rodriguez said in an interview. “You’ve basically eliminated a lot of the amateur players who just want to participate in the space just because it’s hot. This has really leveled the playing field.”
The SEC said in April it would review some accounting practices behind the vehicles, and after-market performance has stumbled as some SPACs have scrambled to restate their financials. The IPOX SPAC Index, which monitors trading in SPACs that haven’t yet completed a deal, is down almost 25 percent from its February peak as investors cooled on their potential and launches slowed. Read more.
