I was talking to a GP of a small Private Equity company the other week and, among other things, we talked a bit about SPACs as well.
He was bearish on the whole thing: “mark my word…this thing is about to fizzle out pretty quickly. Maybe by Q4 of this year max.”
Well, so far his prediction seems to be right on the money: the number of deals fell more than 50% between February and March, while the value of those deals fell by more than 30%, according to data from financial market data firm Refinitiv.
After a historic run-up earlier this year, shares of new SPACs hovered around their IPO price in March.
Well, a one month decline doesn’t make a trend so perhaps we should give SPACs some breathing space and revisit them again in July.
