Media Coverage
Source: Fortune
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
07.09.25
Special purpose acquisition companies, or SPACs, are making a comeback after falling out of favor a few years ago, when more than 60% of them couldn’t complete a merger and had to return money to investors.
In an interview with Fortune, Pillsbury partner Stephen Ashley said that there were too many SPACs chasing a small number of acquisitions during the SPAC boom in 2021, and when they couldn’t complete a merger before their deadline, they were forced to liquidate. Some investors also redeemed their shares before the SPAC completed a merger. Both groups got their money back, he said. “A large number of these investors may be willing to consider investments in another round of SPACs with more seasoned sponsors,” he added.
This time around, SPACs are benefitting from SEC rules enacted last year that require them to provide more disclosure about items including conflicts of interest, sponsor compensation, and dilution.
Ashley said that “the SEC clearly had concerns about the performance of SPACs for a while leading up to the rule changes, and the final rules they settled on will probably focus market participants on better and more grounded disclosure.”
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