CC Capital Partners Founder and Senior Managing Director Chinh Chu and Mariposa Capital Founder and CEO Martin E. Franklin recently sat down with Bloomberg’s Ed Hammond at the Bloomberg Invest Summit in New York and discussed the outlook for SPAC’s (special purpose acquisition company’s)
The Bloomberg Invest Summit in New York is one of the most eagerly anticipated events in the financial calendar. It brings together the most influential, dynamic and innovative figures within the investing world for in-depth discussions of the challenges and opportunities arising from the rapidly changing global financial landscape.
This year, Chinh Chu, the billionaire investor made famous for his deal-making at Blackstone discussed the SPAC outlook along with Sir Martin Ellis Franklin, the British-born Co-founder & Executive Chairman of Nomad Foods, Element Solutions Inc., and Jarden as well as the Founder and CEO of Mariposa Capital, a Miami based family investment firm. And it did not disappoint.
Entitled The SPAC Outlook: Blank Check or Blind Faith? the two investing giants sat down with Bloomberg’s Ed Hammond and provided a 30-minute master session on how SPACs work and their future.
After both acknowledging the different types of SPACs out there, Chinh described how there is now a SPAC 2.0 version which offers a more viable solution to the traditional IPO.
SPAC volumes account for anywhere between 15 – 20% of the total IPO value. Chinh who first worked for Salomon Brothers before making his name (and wealth) at Blackstone, and whose CC Capital acquired Dun & Bradstreet earlier this year discussed the customized catered solutions, including the expertise, that SPAC’s offer as well as what he called as the halo effect which should appeal to the family-owned businesses wanting to go public.
Sir Martin E. Franklin, who Chinh described as the ‘Grandaddy of SPACs’, said the problem with the smaller SPACs in the US is the structure and the arbitrage play. “They buy the unit they sell the warrant they have the redemption right they don’t really care whether you do it. He described it as “phoney capitalism.”
Both Sir Martin Franklin and Chinh Chu discussed the long-term appeal of any potential deal, as well as discussing the advantages and methodologies of SPACs in what proved an illuminating discussion.
The full video can be found here:
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