No End in Sight for Blank-Check Firms After Year of the SPAC
- SPACs raised a record $78 billion on U.S. exchanges in 2020
- Founders set to vie for targets, offer investor concessions
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There’s no stopping the SPAC, which emerged from obscurity to seemingly take over finance in 2020.
Special purpose acquisition companies, or SPACs, went from a back-of-the-shelf financial vehicle to one of the biggest segments of initial public offerings, with a record $78 billion raised in the U.S. this year, according to data compiled by Bloomberg. That exceeded the combined total of SPACs in all previous years and made up about 45% of this year’s record $177 billion IPO volume, the data show.