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While the world was quite thrilled about the expansion of SPACs in 2021, it seems now obvious that a shift has occurred over the course of the year.
A success in recent years based on three factors
As a reminder, a special purpose acquisition company (“SPAC”) refers to an empty company listed on a stock exchange that seeks to raise large sums of cash from the public, with the intent of using this capital to find and acquire a private target company (usually within two years).
Although SPACs have been around for decades, their popularity has increased dramatically in 2020 and 2021, as they accounted for 15% of all private equity exits in 2021(1). First, their recent success stems from the fact that they enable...
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