The SPACs phenomenon
Featured in our Offshore Report (April 2021)
The big story so far this year, and it’s continuing to expand outside the original US base, is SPACs,’ says Edward Mackereth, Ogier’s global managing partner. There is no doubt that SPACs – an acronym for special purpose acquisition companies – are indeed big news.
Although they have existed for decades on public markets, a tipping point occurred in 2019 when private equity firms began to use SPACs more often, creating an explosion of interest over the past 12 months in this relatively arcane financial instrument. Activity has been high both onshore and offshore.