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