Elliott Management Corp., the best-known hedge fund for its high-profile shareholder ventures, is looking to join the SPAC bad news.
The company, founded by billionaire Paul Singer, has been meeting with banks about raising more than $ 1 billion for a special purpose construction company, according to people familiar with the matter. They warned that the process is at an early stage and plans could change.
Assuming Elliott moves forward, he could use the money to buy a large company – perhaps billions worth of doubles based on the targets that white check companies of the same size have agreed to mix with.
SPACs are empty shells that raise money with the sole purpose of looking for a target to join and in the process become public. They have exploded in popularity as they offer a short-term advantage to the public markets. So far this year, at least 116 SPACs have raised $ 35 billion, setting the market on track to go through last year’s record of more than $ 80 billion, according to SPAC Research. 10 new SPACs were launched on Friday alone.
They often feature big name investors or celebrity supporters such as former Yankees star Alex Rodriguez and former house spokesman Paul Ryan. Many of Elliott’s hedge fund rivals have built their own SPACs but Elliott, a maker of unsustainable contracts, had been absent from the party.