Questions about launching a SPAC

  1. How important is it to have a placement agent? Are they the ones that set up roadshows? Are placement agents the same as ECM bankers for IPOs?
  2. What kinds of things do you talk about on your investor roadshow with potential investors? Is this the same type of thing as would be in a fundraising deck for a regular private equity firm (I am familiar with these so compare and contrast would be helpful). How are they different?
  3. How long does this process typically take, from calling up your lawyer and asking them to do the legal structuring, to finding a placement agent, to completing your roadshow, to starting your search?
    1. I am specifically talking about the length of the "pre-launch" phase if you artificially divide the SPAC process into "setting up" and "doing the search / the job of running a SPAC"
  4. Can you use leverage in the SPAC acquisition process (e.g., we raised $200mm for our SPAC, our target has an EV of $400mm, so we buy with 50% equity 50% / 50% leverage?
  5. How is the day to day role different than working in PE at the Associate or VP levels?
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