Apollo is Raising $500M for SPACs, LWAC sees 97% Redemptions

Apollo is looking to launch a $500M fund dedicated to SPACs. AHAC and LWAC both passed their merger votes, but LWAC saw 97% redemptions.
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Apollo is Raising $500M for SPAC Fund

Who said investing in SPACs has lost its momentum? Reports are emerging that private equity giant Apollo is raising $500M to invest in SPACs. The funds will be used to invest in both IPOs and founder shares. While the details on how they expect to deploy the capital will emerge, the market will definitely take notice.

Apollo, in its own right, has sponsored or co-sponsored at least 6 SPACs with another 2 preliminary S-1s filed. Both Fisker and SunLight Financial were de-spac'ed from the Spartan Energy series. While Allego has struck a definitive agreement with Spartan Energy 3. 

Fisker looks like the early winner, up over +59% since it de-spac'ed last October. 

Apollo's sponsored or co-sponsored SPACs

Apollo's sponsored or co-sponsored SPACs

Redemption Train Rolls On

Locust Walk Acquisition Corp (LWAC) reported that its shareholders "voted overwhelmingly to approve" the resolutions at its shareholder meeting on the eFFECTOR Therapeutics transaction. Yet 97% of the SPAC's trust elected to redeem, leaving just $5.2M left in the SPAC's trust. A staggering number. Of course, the company waived its minimum cash condition. LWAC will trade as EFTR on Thursday. 

SPAC IPO Concessions

There have been no SPAC IPOs this week, following just one last week. However, we have seen a slew of S-1 amendments get filed, perhaps gearing up for a post Labor Day slew of pricings. These amendments are largely including new concessions to get deals priced amid an oversaturated SPAC market. Some themes:

  • overfunded trusts
  • rising warrant coverage
  • adding rights
  • anchor investors getting founder shares
  • downsizes

SPAC Calendar

Two more votes are set for tomorrow, expect another healthy dose of redemptions. 

Aug 25 | $ 9.76 | GWAC - Good Works Acquisition Corp --> Cipher Mining Technologies Inc.
Aug 25 | $ 8.78 | SNPR - Tortoise Acquisition Corp II --> Volta Industries, Inc.
Aug 26 | $ 9.89 | DFNS - LGL Systems Acquisition Corp --> IronNet Cybersecurity, Inc.
Aug 27 | $ 9.91 | TWCT - TWC Tech Holdings II Corp --> Cellebrite

Today's Price Action

Biggest Gainers

5.67% ~ $ 11.19 | LEGO - LEGATO MERGER CORP. (Announced)
4.60% ~ $ 8.42 | AJAX - Ajax I (Announced)
4.52% ~ $ 11.57 | VACQ - Vector Acquisition Corp (Announced)
3.95% ~ $ 12.10 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
2.59% ~ $ 9.89 | DFNS - LGL Systems Acquisition Corp (Announced)
2.57% ~ $ 9.98 | MCAF - Mountain Crest Acquisition Corp. IV (Pre-Deal)
2.32% ~ $ 15.90 | RICE - Rice Acquisition Corp. (Announced)
2.11% ~ $ 9.70 | FTVI - FinTech Acquisition Corp. VI (Pre-Deal)
1.98% ~ $ 9.79 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
.99% ~ $ 10.20 | KSMT - KISMET ACQ ONE (Announced)
.91% ~ $ 10.00 | GGGV - G3 VRM Acquisition Corp. (Pre-Deal)
.83% ~ $ 9.70 | IBER - Ibere Pharmaceuticals (Pre-Deal)
.83% ~ $ 9.71 | ESM - ESM Acquisition Corporation (Pre-Deal)
.83% ~ $ 9.74 | TRCA - Twin Ridge Capital Acquisition Corp. (Pre-Deal)
.83% ~ $ 9.74 | HCII - HUDSON EXECUTIVE INVESTMENT CORP. II (Pre-Deal)
.82% ~ $ 9.78 | FACT - Freedom Acquisition I Corp (Pre-Deal)
.82% ~ $ 9.83 | PHIC - Population Health Investment Co Inc (Pre-Deal)
.81% ~ $ 9.93 | TPGS - TPG Pace Solutions Corp. (Announced)

Biggest Losers

-5.30% ~ $ 8.76 | LWAC - Locust Walk Acquisition Corp. (Announced)
-2.98% ~ $ 8.78 | SNPR - Tortoise Acquisition Corp II (Announced)
-2.51% ~ $ 9.91 | BLUW - Blue Water Acquisition Corporation (Announced)
-2.41% ~ $ 9.80 | EOCW - Elliott Opportunity II Corp. (Pre-Deal)
-1.86% ~ $ 10.01 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-1.81% ~ $ 9.76 | GWAC - Good Works Acquisition Corp (Announced)
-1.50% ~ $ 9.85 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
-1.21% ~ $ 9.83 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
-1.12% ~ $ 9.71 | TIOA - Tio Tech A (Pre-Deal)
-1.11% ~ $ 9.76 | GPCO - Golden Path Acquisition Corporation (Pre-Deal)
-1.07% ~ $ 9.73 | SBEA - SilverBox Engaged Merger Corp I (Pre-Deal)
-1.01% ~ $ 9.84 | FWAC - Fifth Wall Acquisition Corp. III (Pre-Deal)
-.92% ~ $ 9.90 | GWII - Good Works II Acquisition Corp. (Pre-Deal)
-.92% ~ $ 9.74 | MSDA - MSD Acquisition Corp. (Pre-Deal)
-.88% ~ $ 10.10 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
-.81% ~ $ 9.75 | ALCC - AltC Acquisition Corp. (Pre-Deal)
-.81% ~ $ 9.75 | RACB - Research Alliance Corp. II (Pre-Deal)
-.76% ~ $ 9.78 | PANA - Panacea Acquisition Corp. II (Pre-Deal)

More from Boardroom Alpha

More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.

See a full SPAC list here.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)