The use of Special Purpose Acquisition Companies (SPACs) as an alternative route to gain access to the capital markets has proved extremely popular in recent years.
There has been a huge rise in the appeal of SPACs, which has been especially evident during the pandemic. 2020 saw records broken for SPACs, with a total of $73 billion raised through them in the US. Yet this was soon dwarfed by the first three months of 2021, in which 298 SPACs raised almost $88 billion.
It is a situation that has prompted other financial centres to consider what they can do to attract lucrative SPACs activity.
Elsewhere, we detail the attempts being made by the Financial Conduct Authority (FCA) to modernise the UK market in order to persuade more high-growth companies to list in London.
Rahman Ravelli has an in-depth guide on the subject of SPACs that answers many questions relating to them.
An article by Syed Rahman details the responsibilities and risks facing directors of special purpose acquisition companies (SPACs).
