SPACs take 2020 by storm and change the IPO game for the long haul, Providence CEO Jonathan Nelson to move into executive chairman role, New Jersey eyes fee savings in separate accounts with BlackRock, Neuberger Berman and Asia Alts

It's raining SPACS and Providence CEO Nelson will transition to exec chairman.

Morning!

SPACs are the new market move on everyone’s mind. As of Sept 30, 185 special purpose acquisition companies are sitting on more than $58 billion of dry powder, writes Sarah Pringle in an in-depth look at the rise of SPACs today.

“When we first put ourselves on file in 2013, SPACs were not cool. SPACs were the skunk at the garden party,” says Dan Hennessy, chairman and CEO of Hennessy Capital, a SPAC sponsor whose fourth vehicle in August completed a merger with Canoo, an electric vehicle maker.

What’s pushing the SPAC phenomenon, a strategy once reserved for private equity executives who couldn’t raise a traditional fund? Well, strong equity markets have helped. GPs have also found another option to raise capital, collect fees and invest in new companies.

“Every person on the planet cares,” one leading SPAC underwriter tells us. “Every bank has a ‘SPAC guy’. Even every big PE firm. Every law firm is focused on it. You have grandmothers sitting in their house trading SPACs with their pandemic money.”

Read our cover story here and or on PE Hub.

Top Scoops
Providence Equity Partners CEO and founder Jonathan Nelson will move into an executive chairman role effective January 2021, the firm said in a statement. The move is part of a succession that will see Davis Noell and David Phillips as senior managing directors and co-heads of North America. Karim Tabet and Andrew Tisdale will become senior managing directors and co-heads of Europe, while John Hahn, head of the firm’s London office, will retire. Read the news here on PE Hub.

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