For subscribers that have a Database Subscription, we’ve added a new table that you can now find under the SPACs tab: At-Risk Capital / Promote.
We’ve detailed each SPAC team’s at-risk capital as well as the sponsor’s promote for all SPACs by category: Searching for a Target, Announced a Transaction, and currently Filed for IPO. Now you can see just how much is at stake…
A snapshot of the current “Filed for IPO” category has been provided below, but in order to view the other two categories, you will need to be a subscriber.
For those unfamiliar with the term, the at-risk capital of the sponsors is contributed at the time of the IPO via a private placement purchase of either warrants or units. It is this capital that pays for the expenses of the offering (i.e., underwriters’ discount, legal and accounting fees, printing costs, filing fees, etc.) and is what brings the trust amount to 100% (or greater if the trust is over-funded). However, it is fully “at-risk” since if the SPAC cannot complete a business combination and liquidates, the sponsor loses the entire investment. It’s some serious “skin in the game.”
For subscribers you can find the new table HERE.