Special goal acquisition corporations, or SPACs, have change into fairly the trend in 2021. After elevating $82 billion final 12 months in a sequence of choices, these “blank check” corporations are intriguing buyers due to their trendy nature and high-growth potential.
If you’re questioning one thing extra foundational — what, precisely, is a SPAC?” — MarketWatch’s Robert Powell can provide the broad strokes.
But should you’re on top of things on why these distinctive automobiles are so well-liked and you’re extra concerned about discovering one to throw your money behind, listed here are 9 choices for you.
Full disclosure: The write-ups under are meant to be placed on a watch record. They’re primarily based, partially, on acquisition hypothesis. And identical to rumors of a merger or buyout in a standard inventory can in the end come to nothing, SPAC buyers must take all of the hype and forecasting with a grain of salt till they see a press launch asserting that the checks have been signed and these are accomplished offers.
890 fifth Avenue
890 fifth Avenue Partners
which is certainly positioned precisely the place you suppose it’s, has a various and fascinating government group that clearly has a nostril for digital media. There’s Emiliano Calemzuk, a director at South American e-commerce large MercadoLibre and former president of Fox’s TV studios. There’s additionally Scott Flanders, CEO of digital health-insurance portal eHealth, and former CEO of Playboy Enterprises and old-school music-by-mail supplier Columbia House. Then there’s David Bank, who works in company improvement and technique for A+E Networks. Perhaps unsurprisingly, the latest rumor is that this media group is in talks with listicle icon BuzzFeed to take them public through their 890 fifth Avenue SPAC. But even when this rumor falls by, it’s a sign of the form of Twenty first-century media platforms 890 is concerned about.
Accelerate Acquisition Corp.
is the blank-check firm led by Robert Nardelli, former CEO of each Chrysler an Home Depot, and Jeffrey Kaplan, former head of world M&A at Merrill Lynch and former COO of Appaloosa Management. In a March IPO, AAQC raised $400 million earlier than charges and bills. Unlike a number of the different SPACs on this record which have a particular tech-flavored strategy, Nardelli is maybe greatest identified for issues like constructing out the wholesale industrial provide enterprise of Home Depot or overseeing practically 50 acquisitions whereas on the helm of GE Transportation and GE Power Systems. This distinctive industrial focus could make AAQC the popular car for start-ups which are extra direct performs on the true economic system relatively than Silicon Valley moonshots. The SPAC itself is fairly new, simply elevating money in March, however in its S-1 submitting Accelerate mentioned “we intend to initially focus our search on identifying a prospective target business in North America within the industrial, transportation & mobility, consumer and retail sectors.” That appears to suit its government expertise properly.
Altimar pulled off a profitable deal on the finish of 2020 with the mashup of its $275 million SPAC with Owl Rock Capital Group and Dyal Capital Partners. The end result was a brand new mixed different funding supervisor with over $45 billion in property beneath administration, which is able to be often called Blue Owl. Now it’s again within the information with a rumor in early March that its Altimar Acquisition Corp. II
SPAC, which closed a $345 million providing about two months in the past, is rumored to be in talks to take online picture firm Shutterfly public as soon as extra. Shutterfly first went public in 2006, however was taken personal by Apollo Global Management in a $2.7 billion transaction in 2019. In typical personal fairness trend, it’s now time for Apollo to push the corporate out of the nest — however even when Shutterfly isn’t the ultimate goal of a deal, the rumor speaks to the potential of Altimar to behave as an middleman for personal fairness companies seeking to make an exit.
Altimeter Growth Corp.
raised $450 million in October 2020, and then its sister fund raised one other $400 million in a clean test providing in January for Altimeter Growth Corp. 2
Menlo Park, Calif.-based Altimeter presently manages long-short fairness funds in addition to personal capital funds that collectively are valued at some $10 billion. Its CEO, Brad Gerstner, has managed profitable Silicon Valley exits together with acquisitions by Google, and its director Rich Barton co-founded Zillow in 2004 and earlier than that based Expedia as a discrete group inside Microsoft in 1994. Altimeter clearly has the know-how for a splashy tech deal, and is rumored to presently be in talks with Asia ride-hailing platform Grab.
Silicon Valley bigwig Peter Thiel teamed up with the founder and chairman of the personal funding group Pacific Century Group, Richard Li, to create a carefully watched SPAC, Bridgetown
that has been rumored to be concerned about disruptive startups. In December, the main contender was Indonesia e-commerce large Tokopedia — although with the newer affirmation of a merger with native ride-hailing platform Gojek, that deal clearly didn’t recover from the end line. Still, it’s this sort of deal that Wall Street ought to doubtless count on — one thing with high-tech potential, and most definitely involving hungry Asian corporations desirous to faucet into U.S. capital markets to gasoline their progress plans.
a blank-check firm that has robust shopper roots, raised $300 million final 12 months. Since then, many individuals have talked about how the corporate is stacked with C-suite execs who know the retail market — David Chu, founder and former CEO of Nautica; Fred Langhammer, former CEO of Estee Lauder; and Terry Lundgren, who served for 14 years as CEO of Macy’s. But unusually sufficient, the most recent rumors have been round a robotic surgical procedure firm backed by Microsoft co-founder Bill Gates referred to as Vicarious Surgical. You can take this one among two methods — the primary is that the SPAC feeding frenzy transcends apparent enterprise connections, or the second is which you can’t consider each rumor you examine today. Whatever the case, it should be fascinating to see how this group of skilled shopper enterprise leaders discover their approach to make a market within the SPAC area.
Horizon Acquisition Corp.
and Horizon Acquisition Corp. II
are two automobiles to look at within the SPAC area. Todd Boehly, former president of asset supervisor Guggenheim and co-founder of profitable funding holding firm Eldridge Industries, leads horizon with plenty of expertise in credit score and funding markets. While many SPACs typically put plenty of emphasis on their group’s potential to construct companies, this distinctive understanding of capital markets could give Boehly a leg up. But that doesn’t imply this SPAC is with out trendy Silicon Valley chops, because the founding father of wellness-tracking app PayActiv and the founding father of price range and invoice monitoring app TrueBill are additionally on the manager group. There have just lately been rumors that one among Horizon’s automobiles is concerned in talks with online ticket market and StubHub competitor Vivid Seats, which appears to be the right combination of funding potential and digital disruption that Horizon is in search of in a associate.
Qell Acquisition Corp.
is on a transparent mission said in official publications as “seeking to invest in a high-growth business in the next-generation mobility, transportation or sustainable industrial technology sectors.” An excellent instance comes from a current rumor that Qell is speaking with German flying taxi startup Lilium. Then once more, the rumor from December that electrical bus and battery storage participant Proterra was about to be mashed up with the Qell SPAC made plenty of sense, too — however even with Proterra’s former CEO on the board, that deal by no means occurred. The backside line remains to be a flashy mobility play for Qell, nonetheless, and former GM North America CEO Barry Engle has made clear that his aim for this SPAC is to discover a big alternative in e-mobility. For these within the subsequent Tesla or the following Uber, this will be one blank-check firm that’s price watching in 2021 above the others.
Seven Oaks Acquisition Corp.
is a SPAC for buyers who wish to see their values mirrored on Wall Street, as the corporate particularly put in its S-1 filing that “we intend to focus on opportunities aiming to make a positive social impact with a specific emphasis on good environmental, social and governance (ESG) practices.” The firm raised $200 million on the finish of 2020 with that mission in thoughts, and has just lately been rumored to be concerned about online retailer Boxed that focuses on sending individuals merchandise in bulk — saving on gasoline, packaging and different unlucky facet merchandise attributable to on-demand e-commerce. CEO Gary Matthews was beforehand CEO at IES Holdings — a relatively mundane electrical, communications and home-security participant — so Boxed suits the form of firm Seven Oaks is probably going in search of. After all, you don’t need to be the following big tech startup to easily discover a higher and greener enterprise mannequin.