SPACs are one of Wall Street’s biggest hits in recent years and have become a popular way for companies to go public. The vehicles raised more than $82 billion last year, according to Dealogic, accounting for half of U.S. initial public offerings. At least 66 SPACs have been launched this month.
“SPACs give the average guy a chance to be a venture-capital investor,” said a SPAC investor who requested anonymity. “The way I see it, there’s no risk and a chance to invest in a really good management team.”
SPACs are publicly traded shell companies that exist to buy private enterprises within two years or investors get their money back. The companies often are led by bold-faced names in the business world. At a time when seemingly anyone can sell a SPAC, the most successful operators are distinguishing themselves by doing it a second time or a lot more.