The SPAC Explosion Dimmed but Law Firms Are Still Cashing Checks


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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