PE Spac exit?

Hi guys:

How does a PE exit to SPAC usually work? It seems like you probably can't get all your cash off the table in one go...how do PE firms usually go about it? Do they continue to work on value creation for companies they exit through SPAC? or do they just act as if they are all exited now?

Thanks

 
Most Helpful

For the PE sponsor of the exiting company, it will look similar to other IPOs. Not sure if there is anything inherently different about SPACs.

IPOs don't usually result in full liquidation, with the former PE sponsor usually remaining a majority owner or minority-majority. They will still work on value creation as long as they are on the board, but with extra hoops to jump through with the public requirements.

 

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