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SPAC Overview:

 

Special Purpose Acquisition Companies (SPACs) are a financial vehicle used by private companies to raise capital and go public.  In the United States, $23 billion of capital has been raised for SPACs since 2003.

 

As the SPAC market has matured, the terms to investors have improved meaningfully and the quality of banks underwriting and sourcing management teams for SPACs have improved as well.  These trends support the view that SPACs have secured a position as a source of new capital for small to mid capitalization companies.

 

Despite the increasing number of SPACs, research coverage of SPACs has been limited.  This is due to conflicts that prevent underwriters from covering the companies they are most familiar with.  In addition, traditional sell side coverage is hesitant to allocate time and effort to research a company when certainty of deal completion is not known.

 

Goal of the Service:

 

To enhance portfolio managers’ returns by providing timely, independent, and thorough analysis of the new company (newco) being created and by assessing the probability of the deal being approved by the SPAC shareholders.  In addition, the service provides actionable trade recommendations for pre deal and post deal SPACs as well as a handful of select special situations recommendations per year.

 

Subscribers to the Service Will Have Access to:

 

  • Newco analysis that includes downloadable financial models
  • Specific trading recommendations for SPACs as well as select special situations
  • Summary of all key data for all SPACs organized in a user friendly fashion
  • Tracking and analysis of the SPAC through to shareholder vote i.e. highlights with calls with mgmt, industry news, tracking of comps etc.

 

The service is web based with email distribution.

 

Who is this Service for?

 

Portfolio Managers: who have existing positions in SPACs and want analysis of the newco they own.

 

Small Cap Portfolio Managers: who want exposure to low volatility names, get in early before the street discovers the name and traditional sell side coverage starts.

 

Risk Arbitrage Portfolio Managers: who want to invest in innovative “reverse risk arb” by buying SPAC common and warrants ahead of shareholder vote.  Earn reasonable cash returns at minimum or ideally returns greater than cash if the deal is accretive.

 

SPAC Bankers: who want to keep a tab of current events in the entire universe of SPACs and track how the street evaluates and reacts to the newco’s being created.


SPAC Management Teams:
who want to be informed of the most current transaction structures and tactics used to raise capital and gain shareholder approval.

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