Many private-equity firms have embraced the recent boom of SPACs, but whether they rely on their own money or the funds they manage is a decision that some investors hotly debate, the Wall Street Journal reports. Some firms use their funds to sponsor blank-check companies while others make the investment with their own capital. Either approach can upset investors.
“Who’s sponsoring the SPAC—the firm or the fund—is probably the most important question,” said Brendon Parry, a managing director who oversees private investments at TIFF Investment Management, an asset manager for nonprofit organizations. Read more.
