U.S. investors went crazy for SPACs at the turn of the year, pumping $90 billion into the special purpose acquisition companies from December through February alone, Bloomberg reports.
The SEC damped the frenzy with a series of announcements in March and April that warned about celebrity-endorsed SPACs, noting that VIP involvement in a SPAC doesn’t mean it’s a wise investment.
Investment has since cooled off significantly.
So the main financial beneficiaries of SPACs — the sponsors who create them — are looking elsewhere to continue the craze. Top of the list is Europe, where the number of new SPACs accelerated from February to April, and there’s no sign of growth there abating. Read more.
