SPACs have turned from a Wall Street experiment into a global talking point, and every firm wants a slice. I look at what’s really driving the boom, how the UK and US markets differ, and which law firms are positioning themselves for the inevitable reality check.
Every few years the market invents a new acronym and calls it innovation. In 2021, that acronym is SPAC.
Special Purpose Acquisition Companies, blank-cheque vehicles promising fast access to public markets, have exploded. Dozens are listing in New York every week, and the ripple has reached London.
The question is whether this is the new frontier of capital markets or just another cycle dressed as disruption.
Right now, it feels like everyone wants in.
US firms with strong ECM benches are fielding calls daily from sponsors who, six months ago, hadn’t heard the term SPAC. UK firms are scrambling to prove they can deliver the same speed and flexibility as their US counterparts.
Clients see quick liquidity. Lawyers see deal flow. Both might be right, for now.
But this level of activity isn’t about product innovation; it’s about excess capital searching for a home. The legal market needs to remember that.
The London angle
The UK market is, predictably, trying to catch up.
The FCA’s review of listing rules is designed to make SPACs more attractive here, but London is a more cautious ecosystem. Sponsors and banks want to know the regulatory guardrails before they commit serious money.
Still, the appetite is real. I’ve seen several firms reposition their ECM partners overnight to capture this wave, a sensible move if managed carefully, a dangerous one if it distracts from core M&A.
The firms best placed to win aren’t those shouting “SPAC!” the loudest, but those with existing IPO discipline and sponsor relationships.
The US dominance
In the US, the story is more mature, and more competitive. Kirkland, Skadden, Paul Weiss, and Latham are running the table. They’ve got the relationships, the banking ties, and the muscle memory for complex SEC work.
London’s challenge isn’t talent; it’s regulation. Until UK rules loosen, the real action will remain transatlantic, with London lawyers servicing the periphery rather than the core.
That will change eventually, but not before the first round of SPACs start testing post-deal performance.
The reality check
When capital chases speed, discipline is the first casualty.
We’ll start seeing de-SPAC disputes, accounting friction, and sponsor fatigue before year-end. The smart firms know this and are already positioning their disputes, investigations, and regulatory partners alongside ECM.
That’s the kind of joined-up thinking that turns a boom into a franchise.
A headhunter’s view
From a headhunting perspective, this has been a revealing few months.
ECM and corporate partners who can actually execute across borders have become hot property again — particularly those comfortable working with US sponsors. But firms need to be careful; the spike in demand has inflated expectations.
Paying premium guarantees for short-cycle products is risky. The better investment is in people who can pivot when the SPAC wave recedes — partners who think like strategists, not opportunists.
My take
SPACs are not a revolution; they’re a reminder.
Every boom brings its own mythology, and every cycle rewards the same traits: discipline, client trust, and structural foresight.
The firms that win this round won’t be the ones chasing the listings; they’ll be the ones ready for what comes after.
Because the acronym may change, but the fundamentals never do.