Special-purpose acquisition companies (SPACs) are having a moment. While not new, the past year has seen a flood of investment into SPACs, with the total number of SPAC initial public offerings (IPOs) so far in 2021 exceeding the figure for all of 2020, according to SPAC Track, a website that compiles data on SPACs. Total IPO proceeds for SPAC so far in 2021 exceeds $94 billion—and that money must be put to work acquiring companies…

Most SPACs have about 24 months to find an acquisition target. “For companies that want to go public, continue with their growth trajectory and use shares as currency to fund operations it can be an attractive alternative to an IPO or a direct listing,” says Anthony Giorgio, managing director at TM Catalyst (New York, New York), an investment bank.

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