The biggest sign of the turning tide, the Financial Times (FT) reported Thursday (June 19), is Goldman Sachs’ return to the business of special purpose acquisition company (SPAC) deals after leaving that space.
SPACs, also known as blank check companies, are an alternative way to go public, raising capital through an initial public offering (IPO) to acquire a private company and list it, skirting the usual path to the market.
The market imploded after a wave of popularity earlier this decade, but has since shown a resurgence. According to the FT, SPACs have raised $11 billion so far this year, compared to $2 billion by the same point in 2023 (though still well below the $172 billion peak in 2021).
The FT report — which itself cites reporting by Bloomberg News — said Goldman is taking a cautious approach to SPACs, approving deals on a case-by-case basis and placing limits on the number of sponsors it works with.
Still, the report added, this is a sign of a changing environment, as big investment banks had until recently shunned SPACs, scared away by reputational risk, scrutiny from regulators and a string of failed deals.
What’s changed is the political/regulatory climate, the FT said. The Trump White House has taken a more relaxed approach to policing the financial markets. Investment banks like Cantor Fitzgerald — whose former chair and CEO Howard Lutnick is now the U.S. Commerce secretary — are sponsoring SPACs.
And Trump Media & Technology Group, the parent company of the president’s Truth Social platform, went public last year via the SPAC route.
An earlier report from the FT last month concluded that the White House had set the stage for a SPAC resurrection in a roundabout manner: by imposing tariffs that have led some companies reconsider their plans for an IPO.
“2025 was meant to be the year of the IPO,” said Brandon Sun, head of SPAC investment banking at Cohen & Company. “Given the volatility resulting from Trump’s tariff policies, those hopes have been dashed and crushed. The opportunity for SPACs is pretty incredible.”
“IPOs are not the destination, but they are a massive capital formation moment,” QED Investors Partner Amias Gerety said in an interview with PYMNTS in April.
“It empowers companies that go public, allowing them to be more aggressive, to acquire companies, hire more, and lower their cost of capital. All these benefits are going away.”
