Appetite for SPACs has skyrocketed in the past year, especially among private equity firms, writes Investment Week.
With their experience in deal origination, financing and value-creating, private equity firms seem to be natural allies of the SPAC structure and model. About 10% of the SPACs raised over the past year have been backed by private equity firms.
However, just because private equity and SPACs are the right match on paper, does not mean the relationship will be smooth sailing. Private equity firms also need to be thinking about changing regulations, with UK and Singapore regulators trying to make listing SPACs easier, while the SEC are tightening controls. Read more.
