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PitchBook Analyst Note: Uncertainty Clouds Future for SPACs

Q3 2021

PitchBook Analyst Note: Uncertainty Clouds Future for SPACs

September 27, 2021

PitchBook Analyst Note: Uncertainty Clouds Future for SPACs
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SPAC market levels off amid uncertainty

The SPAC IPO sprint from earlier this year has given way to a more moderate pace, with 106 offerings raising a combined $20.9 billion in Q2 2021. Meanwhile, SPAC acquisitions continue to grow substantially: a record 69 have been added in Q3 so far. 

The high cost of traditional IPOs is likely to sustain demand for blank-check deals, according to our latest SPAC Market Update, even if a return to Q1’s frenzied activity is unlikely. That said, investors’ appetite for SPAC deals could be dampened by several existential threats, including poor performance, a litany of lawsuits, and regulatory headwinds.
 

Table of contents
Key takeaways 1
SPAC formation 2
DeSPAC activity 3
Outlook 6