4 Reasons to Consider Investing in a SPAC – 1 Reason Not To

Born in the 1980s, special purpose acquisition companies (SPACs) are growing up. A surge in SPAC activity that started in 2019 only grew in 2020, bolstered by the market volatility brought on by the pandemic – but also by an influx of more serious investors in a previously niche space. By the end of 2021, SPACs had raised $160 billion on U.S. exchanges – a new record that nearly doubled the level of the previous year.

While some cautionary tales have emerged – one, WeWork, even received the artistic treatment in a recent Hulu series – and regulators are applying increasing scrutiny, these are also signs that SPACs are maturing. And that their explosive growth, somewhat tempered now in 2022, presents opportunity for individuals and families interested in the more sophisticated vehicles SPACs have evolved into.