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Longview Acquisition Corp. II: Follow-Up To Butterfly Network SPAC Trading Within Pennies Of Redemption Value

Michael W Byrne profile picture
Michael W Byrne


  • Longview Acquisition Corp. II is the new SPAC from Glenview Capital Management, the sponsor behind the first Longview Acquisition Corp.'s well-received business combination with Butterfly Network.
  • Despite this strong track record of recent success, shares of the new Longview Acquisition Corp. II are trading at only a very slight premium to redemption value.
  • Longview Acquisition Corp. II fulfills many of the hallmarks of a successful SPAC, raising substantial capital and management that boast significant capital market experience.
  • A focus is on healthcare, where Glenview has historically found value, also bodes positively.
  • We are in a more difficult environment for SPACs where it is increasingly important to separate the wheat from the chaff.

SPAC Environment

The rotation out of high-multiple growth stocks and more speculative names in general that has taken hold of the market this March has not spared the SPAC asset class. On a recent episode of the Real Vision Daily Briefing, Real Vision’s Jack Farley pointed out that of the 282 SPACs that have gone public over the past 2 years (since March 5th of 2019), 36 were trading at less than the $10 offering price 3 months ago, and on the day the show was recorded, that number had nearly doubled to 64, which is a troubling trend for investors in the space.

Despite this apparent decreased appetite for more speculative and more risk-laden equities, a deluge of new SPACs continue to file to go public on a daily basis. While this change in sentiment does not necessarily mean that the SPAC ‘party’ is over as some cynics have eagerly called for, it does imply that many of these new entries are late to the party and serves to remind investors that it is important to focus on the highest-quality SPACs in this environment. This new scrutiny for the space seems to imply that we may not see some of the stratospheric valuations that some SPACs climbed to last summer, but conversely it also means that investors may be able to start positions in some decent opportunities with less froth.

In what has been called the ‘SPAC-lash’, caused by a combination of the aforementioned risk-off environment and reports of further scrutiny from the SEC for the space, even some higher-quality SPACs from sponsors that have delivered on successful deals were not immune from the selloff. For example, last week Soaring Eagle (SRNG) (SRNGU), from the team behind the DraftKings (DKNG) and Skillz (

This article was written by

Michael W Byrne profile picture
Writer, individual investor, and MBA student. I also write and create content for several top fintech and cryptocurrency companies. I am particularly focused on cryptocurrencies and SPACs and I am also currently especially interested in energy and commodities, the digital payments space, and tech/software. I am interested in any opportunities that may arise outside of Seeking Alpha based on my work here so please feel free to contact me.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in LGV.U over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Investing in SPACs involves substantial risk. This is purely an academic exercise for our internal use and you should NOT invest based on this note. Investing in any equity involves risk. Potential investors should use this article as a starting point for their own research and due diligence. Before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. I am not a registered financial advisor or investment professional. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. This article is for general information purposes only, and should not be relied upon as a formal investment recommendation.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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