Funding surge for blank cheque companies points to Spac bounceback

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An investing class left for dead after early excesses and poor performance shows signs of life

Investors and bankers are lining up to raise billions of dollars for new special purpose acquisition companies, defying predictions the asset class would be wiped out after a series of scandals and a regulatory crackdown. Spacs, colloquially known as blank cheque companies, raise money in an initial public offering before searching for a company to acquire. New fundraising has been improving slowly this year, rising about 20 per cent over the same period of 2023 to $3.

I’m not saying Spacs will fill the entire void there, but I certainly believe they can fill a sizeable amount.” Explorer is planning to raise funds for a new Spac in the fourth quarter of 2024 or the first quarter of 2025.

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