Late Friday evening, we had a second SPAC file for IPO with FinServ Acquisition Corp. (FSRVU).  FinServ is a $200 million financial services and fintech-focused SPAC being led by Lee Einbinder, who is the former Vice Chairman of Barclays.  Mr. Einbinder, who recently retired from Barclays in August of this year, will be CEO and Director of FinServ, along with Howard Kurz, as President and CFO.

However, this is mostly a former Lehman Brothers team, with Mr. Einbinder, Mr. Kurz, Robert Matza (a Director of FinServ) and Diane Glossman (also a Director of FinServ) having all worked at Lehman previously. Additionally, Barclays, which as we all know bought Lehman Brother during the financial crisis, will be left lead underwriter. This is Barclays’s second SPAC this year (and ever) having previously book-run Tortoise Acquisition Corp. (SHLL), this past March. However, Barclays will also be joined by Cantor, as joint book-runner, providing additional SPAC underwriting experience.

Additionally, while the FinServ team does not have prior SPAC experience, they do have an Advisor to this team that does, with Shami Patel. Mr. Patel, who is a Managing Director of the Asset Management Group of Cohen & Co., was a Director, Chair of the Audit Committee and member of the Compensation Committee of FinTech I and FinTech II. So while Mr. Patel is not part of the team proper, having him as an Advisor is a nice extra.

So clearly FinServ has the right background for a financial services/fintech SPAC.  However, what about the structure?  Well, FinServ is a 100% in trust, 24 months, 1/2 a warrant SPAC.  Again, similar to Osprey Technology, where in a different SPAC climate they might have tried for a 1/3 warrant (regardless of SPAC experience), they’re opting for the 1/2 warrant instead, which is an easier sell.  As a result, this SPAC should have no trouble rounding out their book.  It’s a good match of terms and team.

Lastly, the FinServ filing makes it eight on file to IPO, which, if all eight price this year, the count for 2019 will be 50 SPACs total.  That’s four more than 2018’s 46 SPACs.  Furthermore, it also means SPACs will potentially raise north of $11.4 billion in gross proceeds. Although, those numbers are likely to be much higher since we still have plenty of room this year for additional SPACs to file. Regardless, what this means is, 2019 is already going to be a record breaking year for the SPAC asset class (post-financial crisis).

Look for FinServ to price on a similar schedule to Osprey Technology – very late October (October 31st?) or early November.

Summary of terms below: