Europe’s richest man is joining the SPAC craze
Bernard Arnault, chairman of the global luxury industry leader LVMH Group, was the last billionaire to use the new "popular" a way to raise money on Wall Street.
Investment holding company Bernard Arnault (Bernard Arnault) – Financière Agache – joins forces with French asset manager Tikehau Capital and two prominent European bankers to create a Special purpose acquisition company, SPAC), which will look for deals in the European financial services sector.
Tikehau Capital said in a statement that potential targets include asset management platforms, fintech companies, insurance companies and diversified financial services companies. The focus will be on «scalable platforms offering significant revenue growth potential», added to it, indicating that this will be the first of several SPACs it plans to launch soon.
According to Tikehau Capital, the company’s operating partners will be Jean-Pierre Moustier (Jean-Pierre Mustier), former CEO of the Italian bank UniCredit, and Diego de Giorgi (Diego De Giorgi), former head of global investment banking at Bank of America Merrill Lynch (now BofA Securities).
SPAC, or "dummy companies" (blank-check), raise capital through an IPO to buy existing businesses. They were once a little-known part of the market, but now their popularity has skyrocketed. 229 SPACs in the US raised $ 76 billion last year, up from $ 13 billion in 2019, according to Goldman Sachs. A wave of new applications this year, including from the former American football team striker San Francisco 49ers Colin Kapernik (Colin Kaepernick) and co-founder of Rocket Internet Oliver Samvera (Oliver Samwer), indicates that the pace is not going down.
While European stock exchanges have largely missed the boom so far, there are early signs that the region is starting to develop..
Tikehau Capital did not provide details on the amount the investment group SPAC is trying to raise, noting only that the four sponsors plan to jointly invest at least 10% of this amount. Bernard Arnault has a fortune of $ 114 billion, making him the fourth richest person in the world and the richest person in Europe, according to the Bloomberg Billionaire Index..
SPAC will conduct an IPO in Amsterdam. Euronext Amsterdam is one of the largest beneficiaries of the recent changes in the financial sector, which determined that EU financial institutions cannot trade European stocks on UK exchanges after Brexit.