SPAC LUMAscape

SPAC LUMAscape

Introducing the SPAC LUMAscape. SPACs or blank check companies have been around for decades but the vehicle exploded in 2020 with record IPOs totaling more than $86 billion. The SPAC LUMAscape maps this ecosystem with over 250 SPACs based on three stages:
 
ACTIVE: Funded SPAC entities in search of a target. There are over 180 such companies across 7 categories that currently have $63 billion in cash. Note that a typical SPAC will lever up their cash with PIPE financing to merge with an entity with an enterprise value averaging 5x the size of the SPAC. This means the $63 billion of SPAC cash translates into $300+ billion in buying power. They are denoted by the text name of the sponsoring SPAC.
 
ANNOUNCED: SPAC funds that have identified a target, negotiated a merger and are awaiting a shareholder vote to approve the combination. There are 39 companies denoted with the logo of the target company.
 
CLOSED: Fully de-SPAC’d funds that have completed their merger and now trade under the name of the target company. There are 34 companies denoted with the logo of the target company.
 
Finally, the SPAC LUMAscape identifies the leading investment banks that underwrite the initial SPAC IPO and, in some cases, advise on the target selection, de-SPAC process, and any necessary PIPE financing.
 
Given the vibrant valuations of the public equity markets, this phenomenon will be an interesting one to watch in the years ahead.
 
As always, we encourage feedback so that we can more perfectly reflect the SPAC landscape.