Special-Purpose Acquisition Companies (SPACs)
Special-Purpose Acquisition Companies (SPAC) are becoming increasingly popular to fund sustainable enterprises-
McKinsey analyzed the performance of recent SPACs—a mixed track record—and found that SPACs that are led or co-led by operators, rather than solely by investors, tend to outperform throughout the deal cycle.
As of August 2020, SPACs that were actively seeking business combinations held about $60 billion of capital (across more than 100 SPACs) and made up 81 out of 111 US IPOs.
"Done well, SPACs combine the best of private and public ownership: the superior rigor of PE-style governance and the lower capital costs of public firms."