“The markets are doing a kind of burnout because of the PSPCs, investors no longer know where to turn.” The atmosphere is electric on Wall Street, to the point of exhausting financiers, as Alborz Tolou, a Swiss lawyer based in New York, tells us, where he specializes in capital markets. These investment vehicles allow companies to go public in a simplified and potentially very lucrative way. Since they stormed the markets in mid-2020, gigantic sums have been raised. Fierce competition has arisen to find companies to be floated on the stock market through these instruments, which are not free from conflicts of interest. A SPAC: how does it work, who wins what and why overheating is looming.
On Wall Street, everything related to PSPC is sought after like never before. Starting with companies to be acquired. “When we prepare a file for a business open for takeover, it is not uncommon for our clients to receive 10 to 15 calls from PSPC. Some are offering better terms, others will want to bring in more money with more solid investors, ”says Alborz Tolo, lawyer at Kirkland & Ellis in New York, one of the leading studies in PSPC.