SPAC Backlog Thickens, We Start Using the Word "Glut"

There are more SPACs on file with the SEC than have priced since early 2007. By our count nearly 100 SPACs, including foreign SPACs filed on a confidential basis, are waiting for market conditions to improve and move through the review process.

According to TheDeal.com:

"[The] large backlog of about 70 registrations has strained the market’s capacity. “There’s too much supply of issuers and just not enough demand,” said a New York investment banker."

We believe that many bankers, management teams and sponsor groups are taking a wait and see attitude these days, as the equity markets are still roiling from the mortgage crisis, depressing acquisition valuations and the ability of hedge funds to deploy capital.