SPACs: Not So SPACtacular
February 3, 2021 By Jon Henschen, WealthManagement.com Blank check companies are a great deal—for their sponsors. For investors? The results so far have been abysmal, argues Jon Henschen. Special Purpose Acquisition Companies, or SPACs, have been on a hockey stick growth chart since 2016. This alternative method of going public versus the traditional IPO process has been getting the attention of RIAs and broker/dealers such as Cetera’s Adam Antoniades, who has said SPACs may be a viable consideration for that firm going public. Longstanding IBD executives are also now directly involved with SPACs. That includes Larry Roth, who has held the CEO spot at both Cetera and Advisor Group, now raising capital for Britain-based Kingswood Holdings, whose blank check company Kingswood Acquisition Corp. recently went public with the intention of using raised capital to firms in the...