Bill Ackman’s Pershing Square Tontine Holdings released an excerpt from his letter to shareholders contained in the 2021 Pershing Square Holdings, Ltd. Semiannual Financial Statements.
“Nearly all pre-merger SPACs have traded at discounts to NAV since earlier this year,” he writes. “We believe this is due to many poor outcomes for investors in conventional SPACs after they have completed their merger transactions. The poor incentives of conventional SPACs – enormous compensation for a SPAC sponsor for just getting a transaction done regardless of the outcome for shareholders, combined with limited Sponsor “skin in the game” – are the principal problems.” Read more.