Rainmaker Moelis Joins Exclusive Club With SPAC Triple Play
(Bloomberg) -- Even by the standards of the booming SPAC world, Wall Street veteran Ken Moelis has achieved a rare feat: three new blank-check companies in a single day.
The banker revealed plans Tuesday to raise a combined $1.2 billion for Atlas Crest Investment Corp. III, IV and V. The move shows how serial issuers are coming back to market increasingly quickly, with nearly 300 special purpose acquisition companies filing to raise $90 billion in U.S. initial public offerings this year, according to data compiled by Bloomberg.
While dealmakers are rushing to take advantage of the investor mania, only a few have filed for three at once. Former Facebook Inc. executive Chamath Palihapitiya achieved the feat in September last year, while venture capitalist Vinod Khosla did the same on Feb. 12.
InterPrivate LLC, the investment firm led by Ahmed Fattouh, also revealed plans for a trio of SPACs in a day last month. Riverside Management Group, the merchant bank started by James Carpenter, unveiled four in quick succession.
The number of sponsors that have filed for two SPACs at a time is much higher. More than a dozen can brag of the achievement, from private equity firms TPG and Warburg Pincus to billionaire Masayoshi Son’s SoftBank Vision Fund and Starwood Capital founder Barry Sternlicht. The list also includes names as varied as travel-industry veteran Gary Teplis, former Cosmopolitan magazine editor Joanna Coles, activist investor Paul Singer and former Russian telecom executive Ivan Tavrin.
Despite all the competition, Moelis can count on investor demand for his latest blank-check companies after the strong track record from his earlier deals. The first SPAC in the Atlas Crest series announced last month it would merge with flying-taxi company Archer in a deal valuing the startup at $3.8 billion. The offering for his second vehicle was upsized to $300 million, or 20% more than its initial target, and it’s now hunting for a merger target.
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