SPAC-tacular! With David Sultan of Fir Tree

It has been a turbulent period for recent market darling, SPACs, also known as Special Purpose Acquisition Companies. Although SPACs began almost three decades ago, they only recently surged in popularity. In fact, more U.S. companies went public through SPACs than traditional IPOs in 2020. Fir Tree Partners has a long history investing in SPACs, and Managing Partner, David Sultan, joins the conversation to provide some perspective.

In this episode, we define SPACs and how they work, discuss how the current wave of SPACs differs from past waves, and speculate as to whether the current craze is a bubble. Listeners will also learn about the various ways to invest, some of the craziest SPACs to date, and concerns that have brought about scrutiny from regulators.

Chapters

0:00 Intro

0:30 Episode Overview

1:17 Welcome and Fir Tree Introduction

1:44 What is a SPAC?

3:33 When did SPACs first hit the market?

4:15 When did Fir Tree start investing in SPACs?

6:01 How is the current wave of SPACs different from previous waves?

7:51 Why a SPAC versus an IPO?

9:57 What is the incentive for sponsors?

10:51 How can an investor invest in SPACs?

13:20 How can managers invest in SPACs?

16:49 Are we in a SPAC bubble?

19:25 The craziest SPAC to date

20:25 A look at the major industries attracting market attention

22:10 Increased regulatory pressures

24:27 What's next for SPACs?

25:35 Closing thoughts

26:15 Disclosures

Disclosures

This information was prepared by Fund Evaluation Group, LLC (FEG), a federally registered investment adviser under the Investment Advisers Act of 1940, as amended, providing non-discretionary and discretionary investment advice to its clients on an individual basis. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Fund Evaluation Group, LLC, Form ADV Part 2A & 2B can be obtained by written request directed to: Fund Evaluation Group, LLC, 201 East Fifth Street, Suite 1600, Cincinnati, OH 45202 Attention: Compliance Department.

This information is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this presentation. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation to make an offer, to buy or sell any securities.

The information herein was obtained from various sources. FEG does not guarantee the accuracy or completeness of such information provided by third parties. The information in this presentation is given as of the date indicated and believed to be reliable. FEG assumes no obligation to update this information, or to advise on further developments relating to it.