SPAC timeline proves a double-edged sword, Blackstone’s Joe Baratta dubs the long-term fund an ‘asset class’, Summit-backed CareCentrix ends deal talks

Blackstone's Joe Baratta digs into the long-term fund strategy, while Deloitte speaks to the financial reporting and regulatory challenges faced by C-level execs during a SPAC process.

Happy Thursday!

The fast pace at which companies can access the public markets through a SPAC process has many c-suite execs excited these days, but a tighter timeline is not without onerous financial reporting challenges, according to experts at Deloitte.

“Are SPACs really cheaper and [easier]? Cheaper, it depends; it’s not easier. Deals are often more complex. The accounting and finance side is typically more difficult,” said Will Braeutigam, partner and head of Deloitte’s Central Region IPO and SPAC Execution Group for the Accounting, Reporting and Advisory practice.

While speed is viewed as the top benefit among C-level or executive leaders – surpassing factors including access to PIPE capital and mitigation of market volatility – approximately 25 percent of those polled by Deloitte also cited the accelerated timeframe to complete a transaction as the biggest challenge. Regulatory requirements, including SEC compliance, was the most common roadblock identified.

Read more on PE Hub.

Long-term fund strategies, only an idea a few years ago, have come of age as investors see early evidence of performance, Joe Baratta, Blackstone global head of private equity, said in an interview with Buyouts.

Fund I put the thesis to the test. It backed about half a dozen companies, among them SESAC, a music rights organization that manages licenses for singers like Adele and Bob Dylan. Acquired in 2017 from Rizvi Traverse Management, it was the strategy’s first transaction.

Check out Kirk Falconer’s full report.

In other news, CareCentrix, the Summit Partners-backed home- and post-acute care benefits manager, has scrapped potential sale plans after talks with Anthem fell apart, sources with knowledge of the matter told me. Read more.

That’s it for today’s rundown. As always, write to me at springle@buyoutsinsider.com with any tips, comments or just to say hello!