Working for a SPAC (post 2020-21)

Based on the most helpful WSO content, here’s what you need to know about working for a SPAC:

1. Lean Operations: SPACs operate with limited working capital during their search period. This means they often lack the extensive resources of traditional firms, such as Bloomberg accounts or access to GLG. The environment is lean and requires adaptability.

2. Hiring Preferences: SPACs typically look for candidates with specific backgrounds. For example:

   • X years in Investment Banking (IB)
   • Y years in Private Equity (PE)
   • Deep deal experience in specific sectors (e.g., Z) They are not looking for generalists but rather specialists with targeted expertise.

3. Recruitment Process: SPACs often source talent through personal networks, alumni mailing lists, or luck. They rarely use headhunters or conduct broad outreach due to time and budget constraints. The hiring process is fast-paced, often involving just a couple of interviews, a case study, and an offer within a week.

4. Compensation: While cash compensation may be lower than traditional roles, it is often offset by equity. However, the equity comes with risks, such as vesting schedules and post-merger performance.

5. Team Structures:

   • PE/Advisory Firm SPACs: These leverage existing investment and business development staff from their parent firms. Hiring outside the firm is rare.
   • Standalone SPACs: These have dedicated teams, typically 5-10 members, working across multiple vehicles. These teams are more likely to hire externally.

6. Post-Deal Dynamics: Once a SPAC completes its business combination, the role may evolve or end, depending on the structure and future plans of the acquired company.

SPACs remain an exciting and entrepreneurial space, but they require candidates to be comfortable with risk, fast decision-making, and a dynamic work environment.

Sources: Getting hired at a SPAC, Working for SPAC?