Goldman CEO Says SPAC Explosion ‘Unsustainable’


Goldman Sachs CEO David Solomon said he doesn’t think the current special purpose acquisition company (SPAC) boom is sustainable, the Financial Times (FT) reported.
Companies or investment groups create SPACs to raise money through the sale of stakes to either the public or entities such as private equity funds. A SPAC then uses the funds to purchase an existing company.
SPACs themselves have no business operations. They’re set up as shell companies solely for the purpose of taking companies public that don’t want to go through the usual initial public offering (IPO)