Press Release
Today, participants in the SPAC industry launched a new trade association—the “SPAC Association”—to represent stakeholders involved in the special purpose acquisition company (SPAC) industry. “It is time we unite as an industry to develop standards and best practices in concert with regulators and policymakers to help the industry stay healthy and grow by equitably serving all stakeholders: private companies seeking capital, institutional and retail investors, SPACs and service providers,” said Mr. Rajiv Shukla, Chairman and CEO of Alpha Healthcare Acquisition Corporation, who sits on the Association’s Executive Committee and is a serial SPAC sponsor.
The SPAC association represents all key stakeholders involved in special purpose acquisition companies (SPACs) including: investors, sponsors, investment banks, law firms, auditors, accounting firms, other service providers, academics, nonprofits, trade associations and companies in the SPAC transaction ecosystem who wish to engage investors, sponsors, policymakers, and advisors with a united voice focusing on key issues that impact this industry. The SPAC Association is the industry voice for all stakeholders involved in US-listed SPACs.
While SPACs have had a long market presence, the industry has grown rapidly in recent years in response to the shrinking number of IPOs, the growth in the pipeline of large private companies driven by venture capital and private equity and increasing institutional investor interest in SPAC mergers. Since 2020, there have been nearly 600 domestic SPAC IPOs with over $200 billion in total proceeds. Thus far in 2021, there have been nearly 200 announced and closed transactions totaling around $500 billion in enterprise value. As of H1, 2021, SPACs accounted for 62% of all IPOs in the US excluding BDCs, Funds and companies below $50 million in market capitalization.
The growth of the industry has attracted media attention, academic interest and calls for more regulatory oversight to ensure the health of the industry and safeguard the myriad stakeholders from bad actors. Often, complex issues and performance data have been reduced to a soundbite resulting in adverse impact on investors, private companies and SPACs. The industry has had limited engagement with regulators due to the lack of an association representing the viewpoints of all stakeholders.
The SPAC Association has engaged two Washington D.C.-based advisory firms, The Vogel Group and Van Heuvelen Strategies, to provide strong bipartisan leadership and representation. “Once government regulators target a segment of the financial sector, it’s important to work in tandem with policymakers to help them understand the nuances, rather than work against them,” said Alex Vogel, CEO of Vogel Group. “Through education, transparency, and of course, advocacy and public events, we hope to highlight the important role SPACs play in capital formation and helping companies continue to grow,” added Bob Van Heuvelen, CEO of Van Heuvelen Strategies.
The SPAC Association is planning their first policy symposium and conference in Washington, D.C. in early 2022.
For further inquiries, please reach out to info@spacassociation.org and visit our website at spacassociation.org.
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See full press release here.
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