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INTRODUCTION
In a remarkable year for the equity markets in 2020, the increased use of Special Purpose Acquisition Companies (“SPACs”) to take companies public stands out as a defining trend. In 2020, well-known private businesses – like Virgin Galactic – became publicly-traded companies through an acquisition by a SPAC, rather than through a traditional initial public offering (“IPO”).[i] And several prominent investors – including Bill Ackman of Pershing and former White House Economic Adviser, Gary Cohn[ii] – lead SPACs currently looking for private targets to acquire. This trend shows no sign of slowing in 2021.
As SPAC creators and potential private targets continue to pursue this “going public” route, all parties involved in a SPAC acquisition – on both the SPAC and the target side – should be aware of the potential regulatory scrutiny under the federal securities and antitrust laws that will likely accompany the increasing popularity of these transact
Morgan Creek and EXOS Launch SPAC Originated ETF
Actively managed SPXZ targets SPACs pre- and post-merger with an equal weight approach
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CHAPEL HILL, N.C., Jan. 26, 2021 /PRNewswire/ Chapel Hill, North Carolina-based asset manager Morgan Creek Capital Management and New York-based fintech company EXOS Financial today launched the Morgan Creek – Exos SPAC Originated ETF (ticker: SPXZ), an actively managed ETF with an investment strategy focused on Special Purpose Acquisition Companies, or SPACs, and the public companies born from them.
SPXZ seeks to provide investors with liquid, transparent, actively managed exposure to a portfolio of the innovative companies that go public via SPAC mergers. The fund expects to hold approximately two thirds of its capital in an equal dollar weighted portfolio of the largest companies to have completed SPAC mergers over the past three years, and approximately one third of its capital in
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CHICAGO, Jan. 26, 2021 /PRNewswire/
The owners of the Internet domain www.superhub.com, one of the oldest Web addresses on record and long considered an ultra-high value URL, announced today that the domain is now in play. The owners are in discussions with a variety of potential buyers, including Special Purpose Acquisition Companies (SPACs) that want to build joint ventures in the online gaming space occupied by DraftKings (DKNG) and Penn Central (PENN). There is a significant opportunity here, explained Tal Newhart, the FinTech entrepreneur who owns the domain. Our focus is on selling to or co-venturing with the right partner. The primary goal is to launch SuperHub.com as a hyperhub that leads the acquisition and roll up of proven players in gaming or another suitable category such as major news or consumer sales. Deals of this type are natural for Newhart, who wrote the book
Ernest Werlin
Chaos theory is the science of surprises. By understanding how our ecosystems and our economic systems are interconnected, we can hope to avoid actions detrimental to our long-term well-being. One example is the butterfly effect. This refers to the impact of a butterfly that has flapped its wings in New Mexico subsequently causing a hurricane in China.
Over my lifetime, I have observed how seemingly singular events can have global repercussions. The OPEC oil embargo, the meltdown of hedge fund Long Term Capital Management and the subprime mortgage implosion created worldwide meltdowns.
Is there an economic tsunami in the offing? The fantastic run-up in the prices of initial public stock offerings (IPOs), the boom in financings by Special Purpose Acquisition Companies, and the absurdly low level of interest rates offered by high risk CCC bond issuers could have significant downward repercussions.