Elliott Management Corp., the hedge fund best known for its sincere shareholder activist campaigns, would like to join the sweltering SPAC fad.
The people, founded by billionaire Paul Singer, met with people familiar with bankers to raise more than $ 1 billion for a specialty procurement business. They warned that the process is at an early stage and that plans could change.
Assuming Elliott moves forward, he could use the proceeds to buy a substantial company – potentially worth double-digit billions, based on the targets companies with similar blank checks have agreed to combine.
SPACs are empty shells that raise money for the sole purpose of finding a target to merge and make public in the process. They have exploded in popularity because they provide a lucrative shortcut for the public markets. So far this year, at least 116 SPACs have raised $ 35 billion, which according to SPAC Research has put the market on track through last year’s record of more than $ 80 billion. Ten new SPACs were launched on Friday alone.
They often have big investors or celebrity supporters like former Yankees star Alex Rodriguez and former House Speaker Paul Ryan. Many of Elliott’s hedge fund competitors had already built up their own SPACs, but Elliott, an uncompromising deal, was a notable absence from the party.