Some financiers have now made a business of raising SPAC after SPAC. The venture capitalist Chamath Palihapitiya, who took Virgin Galactic public, has raised a series of funds in search of takeover targets. Popular targets of SPAC deals this year have been electric vehicle companies, some of which have stumbled badly since going public. Goldman’s strategists estimate that 193 blank-check funds are currently sitting on $63 billion in search of takeover targets. This puts them on the clock, potentially crowding each other out of deals or leading to mergers born of urgency instead of prudence.

Source: New York Times December 19, 2020 12:10 UTC