Growing Popularity of Celebrity-Led SPACs

The SPAC boom continued in 2021, with SPACs raising USD109 bn in funds in H1 2021 breaking the 2020 funding record, and once again raising more money and issuing more IPOs than companies going the traditional route.

The strong performance of SPACs have attracted interest from new geographies as well as new types of sponsors. Celebrities such as Shaquille O’Neal and Ciara have also jumped on the SPAC bandwagon, joining SPACs to leverage either their expertise or celebrity network to help a SPAC close a deal. While celebrities do bring unique perspectives to the deal, their entry into the segment together with the general over-exuberance in the market has attracted the attention of the SEC, which promises extra attention and regulations in the segment. Despite this extra scrutiny, SPACs still have bright future ahead.