SPAC and ESG Fads on Collision Course With Billions at Stake
- SPAC IPOs have raised nearly $140 billion over the past year
- Bernstein strategists question if SPACs are good fit for ESG
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Two of the hottest equity market trends are headed for a clash as some ESG investors are having second thoughts about blank-check firms that have flooded the market.
Early signs show that money managers wedded to environmental, social and governance themes are reluctant to buy into special-purpose acquisition companies before a target has been identified. That could potentially cut SPACs out of an investment class that’s on course to exceed $53 trillion by 2025, according to Bloomberg Intelligence.