SPAC Craze Ends for Sovereign Funds and Pensions, Now They Want Out
Posted on 10/24/2021
Special purpose acquisition companies or SPACs have become the biggest buzzword on Wall Street and recently lured retail investors. SPACS have become an increasingly popular alternative to the traditional IPO process. Many of these companies that use the SPAC route typically have more riskier financials. These blank check companies typically lure in hedge funds at the beginning but recently attracted pension and sovereign wealth fund investors.
The number of SPACs so far in the later months of 2021 have dropped. The U.S. Securities and Exchange Commission (SEC) is concerned about the adequacy of disclosures to investors. The SEC is also analyzing the potential conflicts of interests by management and sponsors.
2021 data is not complete.
Sovereign Wealth Fund and Large Public Pension Direct Investments into SPACs
Source: SWFI.com.