It has been dubbed the year of the Spac, and for good reason, as in 2020 Spacs shook up equity capital markets. Last year it is estimated that in the US alone they raised $82bn — and $100m is considered a small deal these days. Dwarfing recent years’ capital raised, we saw an unquestionable boom in Spacs — between July and September, an average of around $10bn was raised a month.

There are a couple of factors driving the Spac race. Spacs represent an opportunity to ride on the coat-tails of some of the best dealmakers in the world. All-star investors — such as hedge fund billionaire Bill Ackman, private equity veteran and rainmaker Chin Chu, and even the former US Speaker of the House Paul Ryan — have set up Spacs. For these highly skilled, highly experienced dealmakers, the Spac structure represents a flexible and innovative way to make deals.