The SPAC Report - April 2008

First Quarter Review

SPACs Account for Half of IPO Market

As the initial public offering market dried up in the first quarter, demand for SPACs held up relatively well, at least through January. As investors shied away from most other public offerings, SPACs accounting for more than half of the first quarter's IPOs.

The pace of SPAC offerings did slow in the quarter, however, and especially in February and March.

SPACs Gaining Traction With Private Equity Shops

Used as Exit Strategy, but With Complications

It's no secret that the private equity boom of the last couple years has sailed into shallow waters. The current credit market has put a serious squeeze on activity.

In such an environment, SPACs have emerged as a prominent exit strategy for private equity sponsors and their portfolio companies.

D&O Insurance: Cheaper, Widely Available, but Not Yet Tested

Over the past year SPAC management and their legal advisors have been purchasing customized directors and officers (D&O) liability insurance that is tailored to the unique structure of the asset class. While there have been very few lawsuits of any type involving SPACs in the past, the market could become increasingly ripe for dispute as it matures. Full Story

Blank Check Beat

• Bear Shake-up Leaves Sidhu Without Banker
• Apex and Dynogen Quickly Cancel Deal
• China-focused SPACs Facing Votes May Fail
• NTR Continues Search After Nixing Kern Merger
• TransCommunity Shareholders Withdraw Objection to SPAC Merger
• New SPAC Researcher Positively Appraises Market's Future
• SPAC Players Join Shell Company Board
• Hirings & Firings

Data Tables

• 1st Quarter Market Rankings
• SPAC Tracker
• SPAC IPOs in Registration