SPACs, Private Equity, Venture Capital See Jump in Investor Capital

Investors continue to go gaga for special-purpose-acquisition companies, venture-capital and private-equity investments.

SPACs brought in about $12 billion of capital in both October and November, about double the figure of the three prior months, according to Dealogic data cited by The Wall Street Journal.

New SPACs are popping up to the tune of three a day this month.

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Meanwhile, the levels of dry powder — the industry term for cash available for investment — hit $440 billion for venture capital funds and $310 billion for growth private equity funds this month, according to Preqin data cited by The Journal.

SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.

Source: The Street

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