SPACs: Next Stop Europe

The use of special purpose acquisition companies (“SPACs”) as fundraising vehicles during 2020 and 2021 has been remarkable. Market sources confirm that the 231 US SPAC issuers that launched initial public offerings in the first quarter of 2021 surpassed the total number of blank cheque companies listed during the whole of 2020.

In this article, our European offices review the key features of a SPAC structure and explain why the Cayman Islands, Jersey and Luxembourg are ideal jurisdictions to establish a SPAC issuer.