Meet the New SPAC Circus Ringleader: The PIPE Investor

Partner Louis Lehot published an article in Thomson Reuters Westlaw titled: “Meet the New SPAC Circus Ringleader: The PIPE Investor.”

Since late 2019, when the SPAC returned to the public markets with a new twist, a circus of activity has breathed new life into the markets for privately-held emerging growth companies, forcing open a large window for public exits not seen in decades. In this “SPAC 2.0 boom,” sponsors of SPAC vehicles first raised large pools of blind capital in the public markets, after which struck deals to buy emerging growth companies for approximately 10x the cash raised plus rollover equity and a second pile of money within the form of a PIPE.

Read the full article here.