What investors should know about SPACs

Published on 19 July 2021

The dilemma between self-regulation and supervised regulation will be key to development in the special purpose acquisition (SPAC) vehicle space. The interest of the US’s Securities and Exchange Commission (SEC) in the sector curbed its recent growth trajectory. Yet the US has very rich financial regulation for SPACs, says Daniele D’Alvia, CEO of SPAC Consultancy, and Europe sees very varied levels of flexibility, making for a patchwork of opportunities.

The destruction of value by certain SPACS during the de-SPAC process, in which an acquisition is made, is a concern for investors, but confidence in the SPAC’s management is the primary measure which can address this issue, and D’Alvia presents evidence to Ruth Emery that more experienced operators have delivered materially better performance than inexperienced leadership.