SPECIAL PURPOSE ACQUISITION COMPANY (SPAC)-LOOKING FOR DEBT/EQUITY PARTNERS
SPAC (Special Purpose Acquisition Company) can facilitate a capital fundraising of anywhere between $40 million to 500 million or above to be able to take advantage of acquisition opportunities available to management.
The SPAC works very similar to a Search Fund, where the proceeds are to be fully invested in 1 single asset or company (in some cases you can group assets or companies to form a single asset/entity to acquire).
The sponsor usually has[redacted]months to find a suitable candidate to merge into the SPAC vehicle (a NASDAQ or NYSE listed blank-cheque company), after which the combined entity will be a "permanent" publicly listed company. In most cases, the combined entity is to have an Equity Value of at least 3x the SPAC size: this is to fully incentivize company management team and the sponsor on using the proceeds to accelerate growth. Upon business combination, the sponsors tend to end up with anywhere between 11-20% of the Public Company shares which brings very attractive cash on cash returns to sponsors (upwards of 6x initial commitment).
The Sponsor would put up an initial capital of up to 5%-6% of the capital to raise. Then they'ed go to the markets to raise the remaining amount (95% of the desired funds pool). Given the markets this year, SPAC's will be becoming hot and an attractive way to raise capital for the PE funds as well as for the companies looking for some cash to make some acquisitions.
I'm looking at some acquisition targets between the $50M and $100M range in the US and Sub Sahara Africa with a focus on Food/Beverage Processing. I'm looking to speak with equity investors (retail or institutional) that have experience putting together a SPAC.
I am also interested in debt/equity parties who might be interested in doing a SPAC. Please message or email me directly [redacted]