Full List Of High-Quality SPACs I Recommend

Summary

• Last updated Jan 11.

Good management teams are very important for a SPAC. Today I'll be talking about some SPACs backed by some of the most experienced and knowledgable asset managers and executives in the world. Best of all, many of these SPACs are unnoticed and are below $12.

Why SPAC(from ETAC)

Nasdaq and NYSE host more than 183 publicly traded technology US companies with a market capitalization exceeding $1 billion as of June 10, 2020. However, a lot of the attention from business press and investors, has been on “mega-corns” — private companies valued at significantly more than $1 billion. This has made the IPO route less accessible causing the number of technology company IPOs to dwindle. An average of 159 technology companies went public each year during the 1990s. Since 2010, that annual average has plummeted; in 2019 and 2018, there were only 28 and 25 technology IPOs, respectively. We believe that the increase in private capital from venture capital and private equity firms has prolonged the time that companies stay private and delaying their entrance into the public markets.

As a result, the number of private companies globally valued at more than $1 billion has soared from 239 in June 2018 to 472 as of May 2020, according to PWC/CB Insights. However, exit paths for private companies remain limited as today’s diminished IPO market has predominantly backed large unicorns, with the median market capitalization of a venture-backed IPO tripling from $660 million in 2012 to over $1.9 billion in 2019. This IPO trough has only increased in 2020 with zero US technology company IPOs as of May 31, 2020.We believe this provides an opportunity to help private companies find alternative ways to access the public markets.

In spite of the focus on “mega-corns,” our management team believes a larger number of equally impressive companies with valuations between $1 billion and $3 billion provide excellent growth and wealth creation opportunities. These companies may not elicit the headline-grabbing attention of the ”mega-corns”; nevertheless, we believe that they too boast remarkable economic performance, outstanding key metrics, deep management talent and carry potential for substantial financial upside for our investors.

TWCT

IPO in Sep for $500mil+

TWCT is sponsored by True Wind Capital, a private equity firm managing over $1bil and a team of 15 full time investment professionals. The SPAC intends to pursue opportunities with private, high-growth, and high-quality technology companies with an overall transaction value between $1B -$10B.

True Wind Capital was instrumental in launching Nebula, a special purpose acquisition company that completed its $275mil initial public offering in January 2018, and eventually completed a merger with OpenLending.

OpenLending(LPRO) has tripled from the $10 IPO price to over $30, which bodes well for Two Wind Capital's second SPAC, TWCT. At $10.5, this SPAC is quite a steal considering this track record.

TWCT is led by True Wind Capital's Chief Executive Officer, Mr. Clammer, and our Chairman, Mr. Greene, who are also the founding partners of True Wind Capital, who have worked together for over twenty years and who, collectively, have more than 50 years of private equity investing experience.

	Possible?	Est valuation	Industry
Zix	No. Already public	-	-
TheSwitch	Possible	-	Live video solutions
LEADVENTURE	Possible	-	Online marketing/SaaS
Openlending	No. Already public	-	-
Sysnet	Possible	-	Cybersecurity
AIA contract docs	Possible	-	-

DMYI

$275mil IPO in Nov 2020

Unit contains 1 share and 1/4 warrant

This is the 3rd SPAC launched by dMY and is managed by former Gluu Mobile CEO Niccolo De Masi and experienced technology executive Harry You. Their two previous SPACs returned 140% and 60% respectively since IPO, both acquiring leading sports betting companies.

DMYI's business strategy is to identify and complete our initial business combination with a company within the mobile app ecosystem, companies that provide technologies that enable mobile apps, such as artificial intelligence, machine learning, cloud technologies, quantum computing and others, or a consumer internet company with an enterprise valuation in the range of $1.0 billion to $3.0 billion, though our search may span many consumer software segments worldwide and key enablement and disruptive technologies underpinning the mobile ecosystem such as AI, ML, cloud infrastructures and quantum computing as identified by our management team.

DMYI intends to specifically focus on companies that have created compelling mobile app experiences with significant growth in segments such as gaming, entertainment, work productivity, e-commerce, financial technology, dating and health and wellness.

My thoughts: DMYI is especially interesting bc the previous SPAC, DMYD, found a combination w/ Genius Sports within 2-3 months of its IPO in August, which is very fast for a SPAC. Based on previous SPACs, DMYI will likely take a sports betting company public.

BTAQ

IPO in August 2020 for $300mil

Unit contains 1 share and 1/2 warrant

The CEO of the SPAC, Leo Apotheker, also has experience being the CEO of HP and SAP, two large technology companies. It was under Mr. Apotheker’s leadership that the company became the global market leader in Enterprise Application software. During his 20 years at SAP, Mr. Apotheker helped transform SAP from a single product company to a multi-solution company, recognized as one of the leading software companies globally.

While our efforts to identify a target business may span many industries and regions worldwide, we intend to focus on public and private opportunities in the technology sector, particularly companies in enterprise software or technology-enabled services.

FUSE

IPO in June 2020

FUSE's management team consists of investment and technology execs from companies like State Street or Blackstone.

FUSE intends to focus on businesses with an enterprise value of approximately $750 million to $3 billion that are applying, providing or changing technology within the fintech or asset and wealth management sectors

It has been speculated that FUSE will merge with BlockFi, which recently raised a series C fundraising round for $50mil and is said to be valued at nearly $400mil. BlockFi allows customers to earn interest and trade using cryptocurrency. The company is said to be eyeing a SPAC deal, so a merger with FUSE is not out of the question.

APSG

$750mil IPO in Oct 2020

I think everyone in the investment space knows about Apollo, a leading global alternative investment manager with approximately $414 billion of assets under management. Apollo’s flagship private equity funds have consistently produced attractive returns, having generated a gross IRR of 39% (24% net IRR)1 on a compound annual basis from inception through June 30, 2020.

A few months ago, I bought into SPAQ, sponsored by an Apollo affiliate. When the company merged with Fisker, I made 70% in 1 day. Today, Apollo has sponsored another SPAC - APSG, and with ownership of over 170 companies, APSG has a massive edge against the growing sea of other SPACs. At below $11, APSG is also a much better value compared to other SPACs.

Although we may pursue an acquisition in a number of industries or geographies, we intend to capitalize on the ability of our management team and the broader Apollo platform where we believe a combination of our relationships, knowledge and experience across industries can effect a positive transformation or augmentation of an existing business.

We do not intend to pursue an acquisition in the natural resources or energy industries, including the upstream, midstream and energy services sub-sectors.

Apollo has a bench of more than 500 investment professionals across North America, Europe, and Asia, with broad industry coverage. Apollo has significant experience accelerating and investing behind growth as a core value creation lever. This approach has come in numerous forms: investing in the incubation of a new technology (Hughes Telematics); building and launching a new platform (Sirius Satellite Radio); acquiring a high-growth target through an existing portfolio company (Playtika); seeding upfront costs to expand a company into a new business line (National Cinemedia); accelerating high-ROI investments in a portfolio company (ecoATM); materially expanding an existing platform and footprint (Sprouts Farmers Market); completing large-scale acquisitions to drive consolidation (Unitymedia); and repositioning a company’s go-to-market strategy (Hostess Brands).

FAII

IPO for $300mil in Aug 2020

Chamath backed rare earth metal company MP is now up 270% from IPO. Guess which SPAC merged with MP - Fortress Value Acquisition I. If FAII can repeat even a fraction of the success of its predecessor, the price of $11 currently is just way too cheap.

Although we may pursue an acquisition in any industry or geography, we intend to capitalize on the ability of our management team and the broader Fortress platform to identify, acquire and operate a business that may provide opportunities for attractive risk-adjusted returns.

Fortress, the SPAC sponsor, is a leading, highly diversified global investment management firm with approximately $41.7 billion in assets under management as of March 31, 2020 and over 1700 clients worldwide.

FMAC

IPO of $360 in Oct 2020

FMAC is backed by FirstMark Capital, a venture firm with over $2.2bil AUM and early investors into companies like:

This SPAC is incredibly under the radar right now below $11 and will likely end up acquiring a fast-growth tech company that has the potential to lead its industry. Potential industries include:

SEAH

While we may pursue an acquisition opportunity in any industry or sector, we intend to focus on the sports and entertainment sectors as well as the technology and services that are associated with these verticals. Examples of these technology/service areas include media, ticketing, payments processing, entertainment travel, gaming, loyalty programs and many others. Our founders have knowledge of these areas and we believe a business operating in one of these areas would benefit from our operational expertise and the experience and networks of our management team.

More DD coming

ETAC

IPO in August for $522mil

While our efforts to identify a target business may span many industries and regions worldwide, we intend to focus our search for prospects within the software and internet technology industries

Our goal is to consummate an initial business combination with a high-performing technology company valued between $1 billion and $3 billion.

ETAC's management team has a combined 56 years of Chief Executive Officer leadership experience across both public and private companies, and across both hardware and software firms.

ETAC has been speculated to merge with Docker, a software code collaboration platform, as several members of ETAC's executive team are directors at Docker. Docker is also worth $1bil+, making it a suitable target.

By enabling applications that run in a self-contained environment, containers promised to make development faster, more secure, and more stable. Docker is widely credited with playing a key role in accelerating the adoption of containers.

Overall, I like DMYI, FMAC, and TWCT the most. 

Potential targets - eToro

In late December, eToro, an online trading platform, announced it was exploring going public via SPAC at an estimated $5bil valuation with Goldman Sachs. eToro has revenue of around $500 million and is profitable, according to the report. Customers for the company have reached 17 million, with 5 million additional customers added in 2020.

Now, the most likely SPAC is GSAH, considering Goldman Sachs is advising regarding the transaction, and the SPAC size on $700mil is also fit for an acquisition of $5bil. I really hope it isn't GSAH since I don't own any. 

Since eToro is from Israel, it may also go through an Israel fintech SPAC like FAII or BTAQ, which would be great.

Potential targets - Payoneer

Calcalist has learned that Israeli fintech company Payoneer is in advanced negotiations to merge with a SPAC company, apparently an American one, at a valuation of $2.5 billion to $3 billion.

Founded in 2005, Payoneer provides online money transfer and digital payment services. Users can pay and receive funds via several methods, including credit cards, debit cards, electronic wallets, and bank transfers. In recent months it has also started to enter the enterprise credit card clearing business. It is currently active in more than 20 countries and has upwards of four million customers.

Payoneer is very similar to eToro but without the GS connection, so likely targets are FAII and BTAQ.

Potential targets - Triller

TikTok competitor Triller is in advanced talks with at least three blank-check companies to go public at a valuation between $3 billion and $6 billion, according to sources familiar with the matter.

That range is broad because the L.A.-based viral video app is seeking to acquire one of its strategic partners, a U.S. subsidiary of a foreign-listed company, before merging with a special purpose acquisition company or SPAC, those sources said. The target company is a tech business that Triller already works with to help monetize its app. If that acquisition goes through, one source said, Triller's revenues would increase from around $100 million to $300 million, and its valuation could be on the higher end of the reported range.

Founded in 2015 but recently retooled under Proxima’s majority-ownership, Triller makes most of its revenue through CrossHype, its influencer marketing product for brands; merchandising opportunities; and a pay-per-view livestream events business, thanks to the company’s acquisition of livestream platform Halogen in July. In the future, it will also monetize through ads on the platform.

Founded in 2015 and acquired by Proxima Media in 2019, Triller told dot.LA it currently has around 18 million daily active users and 65 million monthly active users.

My thoughts: I think the SPAC could be FCAC due to its focus on the media space. It could also be SEAH due to its focus on general entertainment