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The Re-Rise of SPACs

By Steve Hecht on September 17, 2021
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IPO News | Seeking Alpha

In this timely academic piece by Maria Lucia Passador, “In Vogue Again: The Re-Rise of SPACs in the IPO Market,”  the case is made that SPACs in the US will continue their growth in the capital markets and should “update and evolve for good” despite the recent increase in litigation and resultant increase in D&O insurance costs.  The article also examines the use of PIPEs as guarantors of SPAC transactions.  In other words, as Passador wryly suggests, SPACs are more than a simple fad utilized during the pandemic ­–  as if they were “Charon ferrying markets through the darkest of waters” (you know, the ferryman of Hades who transported the souls of the dead across the river Styx) – but based on pre-pandemic trendlines they are here to stay.

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Steve Hecht is a go-to trial lawyer for hedge funds, institutional investors, family offices, university endowments, venture funds and other investors interested in utilizing the legal process to create value for their own investors. Whether by activist litigation, fiduciary duty claims, or appraisal…

Steve Hecht is a go-to trial lawyer for hedge funds, institutional investors, family offices, university endowments, venture funds and other investors interested in utilizing the legal process to create value for their own investors. Whether by activist litigation, fiduciary duty claims, or appraisal and other valuation strategies, Steve has extensive experience across the gamut of options for shareholders.  He regularly tries cases in Delaware Chancery Court and around the country for clients seeking outsized returns. Steve is a partner of Rolnick Kramer Sadighi LLP.

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  • Posted in:
    Banking, Finance and Securities
  • Blog:
    Valuation Litigation & Shareholder Rights Blog
  • Organization:
    Rolnick Kramer Sadighi LLP
  • Article: View Original Source

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