PE Exit Options Narrow as SPAC M&A Value Stumbles
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A stumble in the pace of special purpose acquisition (SPAC) vehicle M&A could spell trouble for a go-to exit path for private equity. Deals inked by SPACs peaked in February, when a record 54 transactions amounted to $116 billion in M&A value. Since then, both the number and value of deals have fallen to levels still historically high, but far off the peak, according to data from
Refinitiv through April.
Two months of decelerating deal flow hardly makes a trend. However the fall in M&A value suggests one exit avenue for private equity may be under pressure.