SPACs acquisition companies

SPACs are special purpose acquisition companies designed to enable their managers to have funds available to make acquisitions quickly and on an opportunistic basis. Thanks to their asymmetric return profile, SPACs popularity has shot up and volumes exceeded USD 80bn in 2020. Within the first six weeks of 2021, SPAC volumes have already reached USD 42bn or half of the full year 2020. The recent rush of deals suggests, first, equity market strength and, second, that investors due diligence has become more cursory.