Private Equity – Croixstone

2021 is Proving to be Another “SPAC-tacular” Year.

It is nearly impossible to read an article about Wall Street without coming across a mention about SPACs. For those not familiar with the term, Investopedia defines SPAC as “a special purpose acquisition company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company.”

Here are some interesting SPACs facts.

SPACs are often referred to as “blank check” companies.

While SPACs have been around for years, their popularity soared last year with their IPO fundraising hitting a record $83 billion (compared with $13.6 billion in 2019 and $10.7 billion in 2018).

SPAC activity in 2021 is far outpacing last year’s record year. So far in 2021, SPAC IPO fundraising has hit a record $64 billion.

In 2020, the average SPAC IPO size was $335 million for 248 listings.

So far in 2021, the average SPAC IPO size is $317 million for 202 listings.

According to PwC, one of the primary reasons for last year’s SPAC spree was the market entry of high-profile SPAC sponsors with experienced management teams.

PwC also cited the fact that SPACs offer an exit opportunity for private equity owners looking to cash out on their investment in the private company target in a shorter timeframe than in a traditional IPO.

Here are some SPACs links to help expand your knowledge.

Learn SPAC 101 from CNBC .

Read about the benefits and challenges of a SPAC i n this PwC article .

Visit SPACInsider to keep current on SPAC news and statistics.

New Year. New Possibilities.

Isn’t it terrific that we get the opportunity every year to hit the “reset” button? A fresh start. A new runway to consider the possibilities to reimagine your life, your career and your personal growth in the year ahead.

Croixstone is launching into 2021 following a year of significant achievements where we:

Celebrated our 4th business anniversary
Achieved record sales
Marked the 1-year anniversary of our Human Capital practice
Expanded our geographic service footprint to the western USA
Earned two national diversity certifications & one state diversity certification
Gained acceptance into FORTUNE Magazine’s new “Rebuild Program”
Introduced a new suite of services for Private Equity
Relocated to a larger office in Charlotte’s NoDa district
Launched a virtual series of professional development & networking events

While recognizing the continued health and economic challenges facing our nation, the Croixstone team is excited to build on last year’s momentum in making the most of 2021 together with our employees, clients, partners, friends and family.

Let’s go.

The Private Markets

Last week, our Managing Partner, Mark Weber, was invited to speak at the August 2020 monthly meeting of BENG Charlotte (Business Executives Networking Group). Mark spoke about trends in the private markets and focused much of his talk on the private equity sector.

During his talk, Mark recommended that the attendees become familiar with Pitchbook’s publication entitled “What are the private markets?” This free white paper provides a comprehensive, easy read for professionals seeking to better understand this fast-growing economic sector and the ecosystem supporting it.

Download for free here.