Special Purpose Acquisition Companies | Conyers

SPECIAL PURPOSE ACQUISITION COMPANIES THE OFFSHORE ALTERNATIVES ‘SPAC-tivity’ – the Increased Use of SPVs for IPOs | Global Very responsive, highly knowledgeable and provides comprehensive advice.” — Legal 500 Special Purpose Acquisition Companies ( “SPACs” or “blank-cheque companies” as they’re commonly called) have been gaining in popularity in the US and London markets as investors seek novel ways to deploy capital and generate attractive returns in an era of low interest rates and increased market volatility. This type of investment structure is particularly attractive to investors looking for exposure to private equity style deals with the added safety and investment liquidity obtained through the public markets. Whilst SPACs pursuing US targets are still due often incorporated in Delaware, the use of SPACs domiciled in offshore jurisdictions has boomed in recent years by those sponsors looking for a more efficient post-business-combination structure to hold foreign assets. The leading offshore financial centres of the Cayman Islands, Bermuda and BVI are ideally placed to provide an offshore domicile for these acquisition vehicles. Here we look at why SPACs are enjoying a resurgence in popularity.