THE SPAC COMEBACK

Once relegated to the backwaters of finance for their propensity to strike bad deals, special purpose acquisition companies (Spacs) have once again become the topic du jour on Wall Street. Touting their ability to help private companies go public faster without the complexities of an initial public offering, Spacs are more popular than ever. Despite an ongoing global pandemic and economic uncertainty, Spacs have raised $23.9bn globally this year, surpassing last year's record by 70 per cent, data from Refinitiv shows. White shoe law firms and investment banks that for years shunned the industry are now eager to get a slice of the generous fees.

The panel discussed the role and importance of Spacs. Why are they becoming more popular? How are they affecting the acquisition of private companies? And how are they affecting valuations?