Private equity players feeling compelled to join the SPAC boom ?
Many PE firms and asset managers, including Oaktree Capital Management and Century City-based Ares Management Corp., have jumped into the SPAC frenzy over the last year. Others, however, have abstained. Firms such as Beverly Hills-based Platinum Equity and Santa Monica-based Clearlake Capital Group have stuck to their core business of traditional private equity deal-making. Regardless of which side of the divide a firm falls on, there’s no denying the impact of the SPAC boom on the local private equity scene.
The pace of SPACs going public in the past two years has been head-turning. SPACs accounted for the majority of the U.S. initial public offerings market last year, with 248 SPACs raising more than $83.3 billion. This year, SPACs are off to an explosive start, with data as of the end of March showing a little more than $97 billion raised in 297 IPOs by these blank check companies.Read more