Abstract
Since early 2020, special purpose acquisition companies (SPACs) have become increasingly popular. In a recent article, the Financial Times called them “Wall Street’s hottest investment product.”
SPACs are a type of listed shell companies and not a novelty; in fact, they have been around for quite some time. However, with equity markets booming and investors searching for alternative investment opportunities, the popularity of SPACs has been surging especially over the past few months, in particular with hedge fund managers but also with traditional investors.
In Europe, Amsterdam seems to be establishing itself as the most important listing location for SPACs, which is attributable to flexible listing rules and Amsterdam Euronext’s international reputation. In the following, we describe how SPACs work and discuss market developments as well as the potential risks and opportunities involved.
SPACs are a type of listed shell companies and not a novelty; in fact, they have been around for quite some time. However, with equity markets booming and investors searching for alternative investment opportunities, the popularity of SPACs has been surging especially over the past few months, in particular with hedge fund managers but also with traditional investors.
In Europe, Amsterdam seems to be establishing itself as the most important listing location for SPACs, which is attributable to flexible listing rules and Amsterdam Euronext’s international reputation. In the following, we describe how SPACs work and discuss market developments as well as the potential risks and opportunities involved.
| Originalsprache | Englisch |
|---|---|
| Medium | SUERF Policy Brief, No 90 |
| Publikationsstatus | Veröffentlicht - 2021 |