SPACs Raise $12.4 Billion in 2025, 85% Drop From 2021 Peak

Special purpose acquisition companies, or SPACs, have made a comeback in 2025, but this year's crop of blank check companies is notably different from the previous years. The celebrity endorsements and the hype that characterized the 2021 SPAC boom have faded, replaced by a more subdued and experienced group of sponsors. This shift is likely a positive development for the sector, as it may lead to more sustainable and realistic outcomes for investors.

So far in 2025, 61 blank check companies have gone public, raising $12.4 billion as of June 26. This is a significant increase compared to the same period last year, when only 16 SPACs raised $2.5 billion. However, it is important to note that it typically takes months for a SPAC to complete an acquisition, making it difficult to assess their success at this point. The $12.4 billion raised this year is the most since 2021, when the SPAC market was at its peak with 613 blank check companies raising about $162.6 billion in proceeds.

Despite the disappointing outcomes of many 2021 SPACs, which led to a decline in investor interest, the sector is experiencing a revival. Ben Kwasnick, founder of SPAC Research, described the current situation as a "bit of a revival" and predicted that blank check companies are on track to raise $25 billion this year. This is a nearly 85% drop from 2021 but a total that Kwasnick believes is more sustainable. He also noted that there is still huge demand for the SPAC market.

The 2021 SPAC boom was marked by a high failure rate, with more than 60% of blank check companies unable to complete a merger and having to return money to investors. This led to a negative perception of SPACs and drove many investors away. However, some investors were able to get their money back, either through liquidation or redemption of shares before the blank check company completed a merger. Stephen Ashley, a partner with law firm Pillsbury Winthrop Shaw Pittman, suggested that these investors may be willing to consider investments in another round of SPACs with more seasoned sponsors.

In 2024, the SEC adopted new rules for SPACs, requiring them to provide more disclosure about items including conflicts of interest, sponsor compensation, and dilution. They also limited the use of forward-looking statements by SPACs. These changes are expected to focus market participants on better and more grounded disclosure, addressing the SEC's concerns about the performance of SPACs.

This year's SPAC sponsors are more experienced and less flashy than in previous years. Instead of celebrity endorsements, this year's crop includes executives like Michael Klein, a former Citigroup banker, who launched his tenth blank check company, Churchill Capital X, earlier this year. Another example is Gores Holdings X, the latest SPAC from private equity firm The Gores Group, which raised nearly $360 million in May. Some of this year's SPACs are connected to prominent individuals, such as Renatus Tactical Acquisition, which has ties to Trump Media & Technology Group.

The banks underwriting this year's SPACs have also changed. In 2021, bulge bracket firms like Goldman Sachs and Morgan Stanley worked on many of the blank check offerings but have largely left the sector. This year, lesser-known banks have emerged to take their place, with Cantor Fitzgerald, BTIG, and Santander being the top underwriters so far. This shift in underwriting banks may reflect a more cautious and realistic approach to the SPAC market.

Despite the revival of SPACs, not everyone is convinced of their value. One fintech banker expressed skepticism about the purpose of SPACs, pointing to payments companies like Repay, and Paysafe, which used SPACs as a way to go public and have since experienced volatility with their stock prices. However, the more experienced and realistic approach of this year's SPAC sponsors may lead to better outcomes for investors in the long run.