Special purpose acquisition companies (SPACs) have experienced explosive popularity over the last few years. SPACs continue to lead the initial public offering (IPO) market by a wide margin over all other industry sectors, with 248 SPAC IPOs (55% of overall IPO market) raising over US$83 billion (46% of all IPO proceeds), and 66 completed de-SPACs mergers in 2020. Sidley has been at the forefront of this important developing market.
We regularly represent SPAC sponsors in structuring SPACs; SPACs, target companies and their private equity sponsors in SPAC business combination transactions; investors considering investments in SPACs; and financing sources in SPAC debt and equity financing arrangements. As SPACs have become a more mainstream and economically attractive vehicle for realizing shareholder exit value and accessing the public markets, we have seen a significant increase in private equity interest in this sector and counseled numerous private equity funds and their portfolio companies regarding the unique liquidity and exit scenarios afforded by the SPAC structure. With robust experience advising parties on all sides of a SPAC deal, we have access to the divergent perspectives of multiple constituencies, as well as a deep understanding of both the opportunities and challenges presented by the SPAC structure.
