The SPAC Explosion Dimmed but Law Firms Are Still Cashing Checks

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Special purpose acquisition companies are no longer raising record levels of new cash, but that’s OK with Joel Rubinstein. The White & Case partner is optimistic the summer vacations many capital markets lawyers missed out on a year ago might return this August.

“The cadence has slowed in these transactions, which I think is healthy,” Rubinstein told Bloomberg Law. “The frenzy was really unsustainable.”

As SPACs’ popularity exploded last year, Big Law firms rushed into a market they’d historically avoided. But the number of new SPAC IPOs has slowed to a trickle in recent months, raising questions about whether these transactions will fuel revenue going forward or be remembered as a one-hit wonder.

The SPAC IPO boom peaked in February, when nearly 130 blank check companies hit public markets and raised more than $43 billion. But increased regulatory scrutiny led to a raft of SPAC financial restatements. There were only five SPAC IPOs in May…

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