From our 4th Quarter Themes Deck
Please join us for a discussion and Q&A with SPAC Research founder Benjamin Kwasnick on Thursday, October 22 at 10:00 AM ET. Hedgeye Healthcare Sector Head Tom Tobin will be asking about the acceleration of SPAC formation this year (capital raising trends and statistics, broadly and with a focus on the healthcare space), common traits of successful SPACs, return profiles, and other relevant market and trading dynamics.
The Explosion of "Blank Check" Companies
Please join us on Thursday, October 22, 2020 @ 10 AM ET - Add to Outlook Calendar
Healthcare Subscribers: CLICK HERE for event details (includes video and materials link)
Special Purpose Acquisition Companies (aka SPACs or “blank check” companies) have been on fire this year. Bill Ackman’s Pershing Square Tontine Holdings made a splash this year (at $4B it was hard to ignore), but Chamath Palihapitiya’s first SPAC that bought Virgin Galactic in 2019 ($SPACE) may have started the recent trend. Regardless of how the fervor began, we noticed nearly $1B of new healthcare SPACs in Sept 2020 alone and realized that some work was needed here to gain a greater appreciation for the SPAC route vs. a traditional IPO. So, we started digging and asking around; “How much capital is flowing to healthcare SPACs?” … “Are there any unique considerations or return dynamics with healthcare SPACs?” As of this moment, more capital has been raised for SPACs YTD 2020 than in the past 6 years combined. There’s $HCCO (SOC Telemed), Palihapitiya’s $IPOC (Clover), Brent Saunders’ $VSPRU ($400MM IPO), and many, many more to be aware of (e.g., ARYB, LSAC, GRNV, OAC, and TOTA, to name a quick handful).
Benjamin Kwasnick is the founder of SPAC Research, an independent data service focused on US-listed Special Purpose Acquisition Companies. SPAC Research provides custom research and analysis on the SPAC space, as well as a comprehensive data set and synopsis of all material events throughout each SPAC's life cycle.